Berlins Today
watch now The Pentagon has received a big ownership stake in an obscure private oil company, North American Blue Energy Partners (NABEP), that will control crude reserves larger than ExxonMobil’s global portfolio if President Donald Trump’s Venezuela deal is successful. The deal comes eight months after Washington ousted former Venezuelan President Nicolás Maduro in a military raid and co-opted the remaining regime led by interim President Delcy Rodríguez. The Rodríguez government granted NABEP concessions to 17 oilfields in Venezuela for a century.
NABEP’s CEO, Alejandro Betancourt, is a controversial figure with past investigations into his ventures. NABEP granted the Pentagon’s Office of Strategic Capital a 35% equity stake at no cost to U.S. taxpayers, according to deal details released by the White House. This deal gives the U.S. majority control over 65 billion barrels of Venezuela’s proven crude reserves, about 20% of the country’s estimated 303 billion barrels.
If accurate, NABEP would be the second-largest oil company by proved reserves, behind Saudi Aramco, and roughly four times larger than Exxon’s reserves. The Trump administration has taken ownership stakes in companies at an unprecedented pace, arguing such deals are needed to secure critical resources for national security. The U.S. considered direct control of an oil concession in Saudi Arabia during World War II but backed down due to industry opposition.
The Venezuela deal appears unprecedented, with the U.S. government directly taking a stake in a foreign oil company. The Pentagon’s equity stake comes alongside the State Department’s right to purchase 20% of NABEP’s oil output at production cost and a first-refusal right for the remaining 80%. The U.S. government can also veto appointments to NABEP’s board, requiring a majority of U.S. citizens.
The deal is governed by U.S. law and subject to its courts. Experts describe it as a state-owned enterprise, giving the U.S. de facto control over 100% of output at cost. The oil purchased on favorable terms will help refill the Strategic Petroleum Reserve and supply military and sensitive uses, according to the White House.
The Trump administration aims to encourage private investment in Venezuela by strengthening investor confidence through its presence. Major U.S. oil companies like ExxonMobil and ConocoPhillips have been hesitant to invest due to Venezuela’s socialist government nationalizing industry assets in 2007. ExxonMobil CEO Darren Woods called Venezuela ‘uninvestable,’ while Chevron is the only active U.S. oil major in Venezuela, investing $7 billion to double production by 2031.
Betancourt’s past includes money laundering and corruption allegations, though he has not been charged. The U.S. official described him as a ‘proven oil operator’ who can help Venezuela recover from 20 years of economic decline. NABEP has scaled production from 18,000 barrels per day to over 200,000 bpd, aiming to reach over 1 million bpd.
The deal faces legal and political uncertainty, with potential termination if a Democrat wins the 2028 election or if a future Venezuelan regime revokes it. The U.S. goal is to de-risk private long-term investment, but political risks in both Washington and Caracas may limit its impact.
Source: CNBC
