The Trump administration has released details on a new oil deal in Venezuela, involving a joint venture with North American Blue Energy Partners and a 35% stake for the Pentagon.

The White House announced a partnership with North American Blue Energy Partners (NABEP) to develop oil production in Venezuela. The agreement, signed by Defense Secretary Pete Hegseth and Secretary of State Marco Rubio, grants the U.S. Pentagon a 35% ownership stake in a new joint venture company.

Deal Structure and Infrastructure

Under the agreement, Venezuela's acting President Delcy Rodríguez has granted the joint venture 100-year rights to 17 oil fields containing an estimated 65 billion barrels of proven reserves. Many of these fields were previously held by Chinese or Russian firms. NABEP, led by businessman Alejandro Betancourt, has committed to $100 billion in new oil infrastructure investments. The U.S. government will hold veto power over board members and retains a guaranteed right to purchase 20% of the company's oil output at cost. The White House stated that the initiative will be implemented at no cost to the United States.

Context and Industry Outlook

The administration is positioning the deal as a strategy to develop a major oil producer in the Western Hemisphere. The push follows a military mission in January that resulted in the capture of former President Nicolás Maduro on federal drug trafficking and narcoterrorism charges. While the administration promotes the deal as a significant development, some analysts have expressed skepticism regarding the timeline, noting that reviving Venezuela's oil production capacity could take years. NABEP is currently the second-largest operator in Venezuela, employing over 5,000 staff and 10,000 contractors.