The White House announced on Monday that Venezuela's interim authorities have granted a 100-year concession for 17 oil fields to the US-backed North American Blue Energy Partners (NABEP), which holds approximately 65 billion barrels of proven reserves.

NABEP, Venezuela's second-largest private oil producer, has reportedly granted the US Department of War's Strategic Capital Office a 35% equity stake in its parent company, potentially delivering "hundreds of billions of dollars in value and dividends" to Washington. President Donald Trump declared on social media on August 28 that the US had secured "majority control" over more than 65 billion barrels of Venezuela's proven oil reserves without cost to American taxpayers, stating the agreement would "more than double US oil reserves, significantly boost supply, and substantially lower American gasoline prices for years to come."

Venezuelan interim President Delcy Rodriguez confirmed a large-scale oil cooperation agreement with the US, noting via government communiqué that private enterprise participation would enable significant production increases. The deal encompasses 17 strategic oil fields, with investments exceeding $100 billion, projected to generate over $209 billion in tax revenues for the Venezuelan government.

According to a fact sheet released by the US government Monday evening, Washington will retain a right to purchase a guaranteed 20% share of all oil produced from NABEP's current and future operations at production cost, as part of broader efforts to replenish the US Strategic Petroleum Reserve. The US also holds a "right of first refusal" on the remaining 80% of NABEP's production, positioning Washington as the priority buyer of its energy reserves.

The White House confirmed that NABEP also plans to invest up to $100 billion in new petroleum infrastructure in Venezuela to expand output. Under the terms of the agreement, the company is expected to pay $200 billion in royalties and taxes to the Venezuelan government over the initial 25-year period.

Where this deal stands out, however, is that the US is executing an unprecedented operation to gain "majority control" over Venezuela's vast oil resources. Yet this arrangement is vulnerable to legal challenges and remains subject to political changes in both the US and Venezuela. Most major oil companies currently view Venezuela as an uninvestable environment, making it difficult to persuade them to redirect capital and personnel from regions where they already operate comfortably.

Analysts remain skeptical about whether this landmark petroleum agreement can meaningfully boost US energy production and lower domestic gasoline prices in the short term. Developing Venezuela's extensive oil reserves requires substantial investment, and after decades of mismanagement, chronic underinvestment, and sanctions, the country's current oil output remains a fraction of its actual capacity.