As part of the recently announced U.S.-Venezuela oil agreement, U.S.-backed oil company North American Blue Energy Partners (NABEP) is set to take over and reinvest in several Venezuelan oil fields.
“In connection with this agreement, the Venezuelan interim authorities have granted NABEP, a privately held oil company that is the second-largest private Venezuelan oil producer and a proven operator, 100-year concessions for 17 oil fields with proven reserves of approximately 65 billion barrels,” the White House recently confirmed.
According to the White House, NABEP has also agreed to invest up to $100 billion in new oil infrastructure to expedite oil production and improve the country’s dilapidated oil fields.
U.S.'s First Dibs On NABEP Oil
Additionally, NABEP has authorized the U.S. the right to purchase 20% of all current and future oil fields under its control at a production cost rate.
This effort would provide the U.S. with a supply of low-cost oil to refill its Strategic Petroleum Reserve (SPR).
The agreement also stipulates that the U.S. has “the right of first refusal to purchase the remaining 80%” of NABEP production.
This stipulation guarantees the U.S. the right to match an outside offer and purchase the oil before NABEP can sell it to anyone else.
NABEP Will Take Over U.S. Adversary Controlled Fields
According to two U.S. officials, the landmark agreement also provides a strategic benefit against foreign adversaries. NABEP is set to take over 5 oil projects controlled by Chinese companies, as well as one previously run by a Russian entity.
“Not only are we opening up new opportunities for the U.S. government to benefit and for U.S. operators to benefit; we are opening up the United States as the market for this oil which was previously being sent to China,” one U.S. official said.
The White House also confirmed that NABEP will control fields controlled by “corrupt cronies” of Former Venezuelan Dictators Nicolas Maduro and Hugo Chavez. Some of these people include the nephew of Cilia Flores – Maduro’s wife – and Alex Saab, a former Maduro associate currently held in U.S. custody.
