CARACAS — A newly uncovered oil agreement between the United States and a private energy consortium has granted Washington decades of preferential purchasing rights to Venezuelan crude, while the billions of dollars promised for Caracas’ economic recovery remain without any explicit contractual guarantee.
According to an investigation published by ProPublica, the Trump administration signed an 18-page agreement with North American Blue Energy Partners (NABEP), a private firm led by Venezuelan billionaire Alejandro Betancourt. The deal reportedly secures vital US access to Venezuelan oil and protects the interests of private investors, yet it leaves the projected $200 billion in Venezuelan royalties and taxes entirely unsecured.
While the White House has touted the agreement as a cornerstone for Venezuela’s economic revival, analysts reviewing the documents found no provision that explicitly guarantees the country will actually receive the $200 billion over the first 25 years. Instead, the contract meticulously outlines Washington’s purchasing privileges and corporate protections for the venture’s leadership.
Under the terms of the deal, the US government is granted the right to purchase 20 percent of NABEP’s oil production at a highly discounted rate of $30 per barrel. For the remaining output, Washington receives priority purchasing rights that stretch across five decades. Furthermore, in the event of a declared US national emergency, Washington retains an irrevocable right to seize the company’s entire oil supply.
These favourable terms extend to Washington’s planned ownership interest in the venture. The agreement allows the US to acquire its stake with no upfront payment, costing just $0.01 per warrant share.
Critics and sources familiar with the negotiations have questioned the severe imbalance of the concessions. “I gave you 20% of my production at ‘cost plus,’ fine. I gave you all of my production if there’s a national emergency, OK. … So what do I get in exchange?” one reviewer noted regarding the terms.
NABEP spokesperson Terry Wade clarified that the contract is a bilateral agreement between the private company and Washington, rather than directly with the Venezuelan government. While Venezuela is still expected to receive taxes and royalties from the operation, the absence of a guaranteed revenue figure casts doubt on the $200 billion sum heavily promoted by the White House.
Both the US administration and NABEP maintain that the historic partnership will attract much-needed investment, expand production, and generate employment and infrastructure improvements for Venezuela. White House spokesperson Taylor Rogers described the deal as a “major step toward stabilising Venezuela’s economy after years of hyperinflation,” while simultaneously “more than doubling the United States’ oil reserves.”
However, as the agreement remains subject to final closing conditions and additional documentation, the stark contrast between Washington’s ironclad purchasing privileges and Venezuela’s unguaranteed financial projections continues to raise concerns over the true cost of the deal for the South American nation.
Reference: Al-Mayadeen