NABEP plans to produce 1 million barrels per day in Venezuela — The Japan Times

North American Blue Energy Partners (NABEP) said it intends to increase production at 17 oil fields in Venezuela by more than fourfold — from about 224,000 to more than 1 million barrels per day. As The Japan Times reports, the plan is complicated by the need for substantial investment, shortages of equipment and qualified workers, as well as worn-out infrastructure.

NABEP’s agreement with Washington provides that the United States will receive a 35% stake in the parent company and the right to purchase 20% of the oil produced at cost. US President Donald Trump called the arrangement the largest oil deal in history and spoke of 64 billion barrels of reserves across the 17 fields.

At the same time, Francisco Monaldi, director of the Latin America energy program at Rice University’s Baker Institute, believes that about 10 billion barrels can realistically be developed during the 25-year period permitted by Venezuelan law — and only if circumstances develop favorably.

Infrastructure and staffing problems

Three employees at oil facilities and a business partner familiar with NABEP’s operations told the publication that the company owes money to some local contractors. Journalists were unable to determine the size of the potential debt. NABEP representative Terry Wade said the company is expanding its supplier base while transitioning to a new payment system and that all invoices are being paid.

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Giovanni Martínez, vice president of the state-owned company PDVSA, told state media that NABEP could reach production of 1 million barrels per day within six to seven years. In the Maracaibo Basin, where the company operates, about 80% of roughly 4,000 inactive wells require repairs.

Drilling rigs and financing

NABEP said it had arranged for the supply of 60 drilling rigs and 70 pieces of heavy equipment, which are to arrive in batches. The company also said that three drilling rigs are operating in the Orinoco area and that it plans to add three more. At the same time, satellite analysis in early October found no drilling infrastructure at seven of the 17 fields.

The company claims it has invested $1 billion of its own capital since 2024 and does not plan to raise additional debt or sell stakes. A banker working in energy financing and debt restructuring in Venezuela told the publication that NABEP would need strong partners and substantial financing for such a project.