US Secures Stake in Venezuelan Oil Venture Covering 65bn Barrels

By Mintesinot Nigussie  |  September 4, 2026

The United States is taking a 35 percent stake in a private Venezuelan oil venture with rights covering more than 65 billion barrels of proven reserves, giving Washington an unprecedented role in one of the world’s largest oil-producing regions under a deal championed by President Donald Trump.

The agreement with North American Blue Energy Partners (NABEP), a privately held Venezuelan oil company, covers 17 oil fields under concessions extending for 100 years. The White House says the arrangement gives the US government a 35 percent equity stake in NABEP’s corporate parent and guaranteed access to 20% of the venture’s oil production at cost.

Trump has described the arrangement as the “biggest oil deal in world history”, arguing that it will expand US access to crude supplies, strengthen American energy security and eventually help lower fuel prices.

Under the agreement, the US Department of State also receives the right of first refusal on the remaining 80% of NABEP’s production, while Washington will have veto power over board appointments and a majority of the company’s board must be US citizens, according to the White House.

The scale of the reserves involved is significant. The 65 billion barrels would be equivalent to more than the roughly 46 billion barrels of proven oil reserves currently located within US territory, according to the Trump administration.

The deal does not amount to US ownership of Venezuela’s underground oil reserves. Instead, NABEP has received long-term concessions to develop and commercialise the fields, while Venezuela retains legal ownership of its hydrocarbons under its national framework.

NABEP plans to invest up to 100 billion US dollars in Venezuela’s oil infrastructure and increase production from its current operations. The company says it aims to raise output to more than one million barrels per day as it develops assets in the Orinoco Belt and Lake Maracaibo.

The Trump administration says the investment could generate about 200 billion US dollars in royalties and taxes for the Venezuelan state over the first 25 years, while helping rebuild an oil industry weakened by years of underinvestment, sanctions and mismanagement.

The arrangement also gives Washington a direct commercial interest in expanding Venezuelan production. Millions of additional barrels are expected to be processed by US refineries, with the administration arguing that the resulting investment will support American oilfield services, infrastructure and jobs.

The agreement has nevertheless raised questions over its financing, legal framework and commercial viability. Analysts have pointed to the scale of capital required to revive Venezuela’s deteriorated oil infrastructure, while major US oil producers have expressed caution about becoming involved in the politically sensitive venture.

Venezuela holds the world's largest proven oil reserves, but its production remains well below its historical potential after years of economic crisis and declining investment. The new arrangement represents a major expansion of US involvement in the country’s energy industry and forms part of Trump’s wider effort to reshape Venezuela’s oil sector and reduce the influence of China and Russia.

Source: FSX Business News