US set to gain access to Venezuelan oil for 100 years

The United States is set to gain long-term access to Venezuelan oil under a deal announced by President Donald Trump that would give Washington a direct role in the country’s oil industry for the next 100 years.

The highly unusual agreement, announced by Trump on August 28, has prompted Venezuelan oil executives to assess its implications for the country’s energy sector, according to the Financial Times.

Under the deal, the United States will take control of 65 billion barrels of Venezuelan crude and acquire a 35 per cent stake in North American Blue Energy Partners (NABEP), a company controlled by Venezuelan businessman Alejandro Betancourt.

The US stake would give Washington the right to purchase 20 per cent of output from all of NABEP’s current and future fields at production cost. The United States would also have first refusal on the remaining 80 per cent of production to help secure supplies during emergencies.

According to a White House factsheet, NABEP plans to award licences or establish joint ventures with energy companies to develop 17 Venezuelan oilfields through 100-year concessions.

The White House said that “the majority of the incremental oilfields to be operated by NABEP” had previously been controlled or operated by Russian and Chinese groups.

Trump announced the agreement on Truth Social on August 28, calling it “THE BIGGEST OIL DEAL IN WORLD HISTORY!”

By Sabina Mammadli