OilPrice: US and Venezuela reportedly agree on access to 65 billion barrels of oil
According to OilPrice, the United States and Venezuela reportedly concluded an agreement providing North American Blue Energy Partners (NABEP) with access to 65 billion barrels of proven oil reserves across 17 fields. The publication claims that US Energy Secretary Chris Wright signed the document on September 2.
According to OilPrice’s description, the arrangement covers more than one-fifth of Venezuela’s oil reserves, whose total volume the publication estimates at 303 billion barrels. According to its information, the concession term may reach 100 years, whereas modern oil concessions are usually concluded for 20–30 years.
Terms reported by OilPrice
OilPrice writes that the Pentagon’s Office of Strategic Capital holds a 35% stake in NABEP. According to the publication, the US side will also have veto rights on the company’s board of directors, while US citizens must constitute a majority of its members.
Under the terms outlined by OilPrice, the US government will receive the right to purchase 20% of the produced oil at cost and the right of first purchase for the remaining 80%. Funds intended for Venezuela’s state energy sector are to pass through an account managed and audited by the United States.
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Plans and legal risks
The publication links the agreement to Washington’s intention to strengthen influence in the countries of the Americas and limit the role of China and Russia, the aggressor state, in Venezuela’s strategic assets. The article states that some of the fields to be developed by NABEP had previously been controlled or managed by Russian and Chinese companies.
OilPrice also points to possible legal obstacles: according to the publication’s assessment, Venezuela’s Constitution requires National Assembly approval for long-term concessions involving strategic resources. The publication suggests that Venezuela’s Supreme Tribunal of Justice may challenge, suspend, or cancel the concession.
According to the forecast of the Venezuelan government headed by Delcy Rodríguez, target production at the 17 fields is more than 1.5 million barrels per day over a 25-year period. The authorities expect more than $100 billion in investment and $209 billion in tax revenue. OilPrice also reports that Chevron plans to invest more than $7 billion in Venezuelan joint ventures over five years.
