Venezuela Grants NABEP 100-Year Rights to 65 Billion Barrels as U.S. Secures Priority Offtake
Updated
Updated · CNBC · Aug 31
Venezuela Grants NABEP 100-Year Rights to 65 Billion Barrels as U.S. Secures Priority Offtake
3 articles · Updated · CNBC · Aug 31
Summary
17 Venezuelan oil fields holding about 65 billion barrels were handed to U.S.-backed NABEP under 100-year concessions, formalizing the Caracas-Washington deal announced Friday.
The White House said the arrangement gives the U.S. the right to buy 20% of NABEP output at production cost and first refusal on the remaining 80%, aimed at refilling strategic petroleum reserves.
NABEP, Venezuela's second-largest private producer, also granted a 35% stake in its parent to the U.S. Department of War's Office of Strategic Capital; the company plans up to $100 billion in new infrastructure investment.
Venezuela is expected to receive $200 billion in royalties and taxes over the first 25 years, but analysts doubt the pact will quickly lift U.S. supply or lower gasoline prices because Venezuelan output still needs massive rebuilding.
With former Russian and Chinese assets now under U.S. control, what hidden geopolitical blowback awaits this historic century-long oil deal?
Can a private U.S. company truly secure a century of oil rights in a nation still recovering from decades of institutional collapse?
If America’s strategic reserves cannot process extra-heavy crude, what is the true hidden motive behind this massive $100 billion investment?
The Biggest Oil Deal in History? U.S. Control of Venezuela’s Reserves and the Battle for Energy, Sovereignty, and Climate
Overview
In 2026, a dramatic U.S. military raid ousted Venezuela’s president, leading to a new provisional government that quickly reformed oil laws and signed a 100-year deal granting the U.S. control over vast Venezuelan oil reserves. This move was driven by a global oil crisis after the U.S.-Israel war with Iran shut down the Strait of Hormuz, causing oil prices to soar and pressuring the U.S. to secure new energy sources before midterm elections. However, Venezuela’s oil infrastructure is in ruins, major U.S. companies remain cautious, and the deal faces legal risks and fierce criticism for threatening both Venezuelan sovereignty and the global climate.