The largest oil heist in world history? The U.S. seizing Venezuela’s oil reserves

The agreement covers 17 oilfields, with proven reserves totaling 65 billion barrels—more than one-fifth of Venezuela’s total proven oil reserves and exceeding the United States’ own proven reserves of 46 billion barrels. Of these 17 fields, eight are undeveloped fields located in the Orinoco Basin—the site of Venezuela’s vast deposits of extra-heavy crude oil—while the remaining nine are mature fields in the Lake Maracaibo region, currently producing light and medium crude oil. The agreement is expected to bring $100 billion in investment and generate $209 billion in tax revenue for Venezuela. At this point, matters grow even more opaque. The White House’s fact sheet on the deal states the following: ・ Venezuela has granted North American Blue Energy Partners (NABEP) 100-year concession rights over the 17 oilfields. ・ The U.S. Department of War holds a 35% equity stake in this ostensibly 'Venezuelan' private enterprise—without paying any consideration, via instruments known as 'penny warrants.' ・ Under the National Oil and Energy Policy Act (NABEP), the U.S. Department of State is entitled to purchase 20% of Venezuela’s oil output at cost price, and enjoys priority rights to purchase the remaining 80% to replenish its Strategic Petroleum Reserve—which has been severely depleted due to the Iran war—and 'for military and other sensitive purposes.' In other words, Venezuelan oil will now fuel the U.S. war machine. ・ Although the White House describes NABEP as technically a Venezuelan private company, the U.S. government retains veto power over all board appointments; board members must be predominantly U.S. citizens; and agreements between NABEP and the U.S. government are governed by U.S. law. Such a 'Venezuelan company' is little more than a façade! ・ The White House emphasizes that this 'agreement' forms part of a U.S. 'three-phase plan' for Venezuela, formulated 'following the tremendous success of Operation Absolute Resolve.' This clearly indicates that the U.S. takeover of a large portion of Venezuela’s oil reserves is a direct consequence of the January 3 military assault on the country and the abduction of its president. U.S. Energy Secretary Wright described it as 'Trump’s energy diplomacy'—a highly unusual form of 'energy diplomacy.' ・ The fact sheet further characterizes NABEP’s concessions as part of the 'privatization' of Venezuela’s petroleum industry, governed by the new Hydrocarbons Law of 2026—passed under U.S. pressure—which repealed Chávez-era legislation. ・ NABEP will pay royalties and taxes (exact amounts remain unspecified), but revenues will be handled identically to current Venezuelan oil sales: proceeds deposited into U.S. Treasury-controlled accounts in the United States and disbursed to the Venezuelan government only upon U.S. government supervision and approval ('Robust U.S. governance and auditing standards, along with the Trump administration’s banking reforms, payment oversight, and financial monitoring, will ensure that royalties and taxes serve the interests of the Venezuelan people.') ・ The United States will continue to steer Venezuela’s domestic politics by overseeing 'reconciliation' negotiations between the Rodríguez-Cabello government and the rump National Assembly—a body dominated by reactionary opposition forces elected in 2015. These negotiations have already led to judicial reforms and the release of dozens of prisoners, and are scheduled to resume in mid-September. ・ The White House explicitly frames this deal as part of the 'Monroe Doctrine,' aimed at reasserting U.S. 'hegemony' across the North American continent and excluding competitors—including Chinese and Russian oil companies—('Reaffirming the Monroe Doctrine and expelling foreign hostile forces from our hemisphere: Most of the newly added oilfields to be operated by North American Petroleum Exploration and Development Company (NABEP) were previously controlled or operated by Russian and Chinese companies'). The Chinese government has expressed strong dissatisfaction regarding this matter.

The U.S. openly seizes Venezuelan oilfields; the Pentagon demands a 35% equity stake—media label it a 'replay of colonial history'

This private company is responsible for developing Venezuela’s oilfields and has secured 100-year development concessions over 17 Venezuelan oilfields, encompassing approximately 65 billion barrels of reserves—roughly one-fifth of the country’s proven reserves. According to media reports citing informed sources involved in the negotiations, the United States will also obtain the right to purchase 20% of the company’s output at cost price, with priority access. U.S. officials claim this arrangement would make the state-backed firm the world’s second-largest holder of proven reserves—second only to Saudi Aramco. For investors and global energy markets, this move carries profound and complex immediate implications. On one hand, the U.S. seeks to lock in a supply of low-cost crude oil and replenish its Strategic Petroleum Reserve, which stands at a multi-decade low. On the other, traditional U.S. energy giants now face severe competition from a company explicitly backed by the U.S. government—forcing a fundamental reshaping of market pricing and industry investment logic. Although officially packaged as a win-win arrangement, the deal’s aggressive structure has triggered intense concerns within the industry regarding its legality and political risks. Analysts warn that bypassing Venezuela’s constitutional constraints and tying the deal to a private company not only heightens future investment expropriation risks but has also drawn sharp criticism from media outlets and academia accusing the U.S. of reviving 'neo-colonialism' in Latin America. Deal Structure: The Pentagon acquires equity in the private company via 'penny warrants' According to reports, the deal underwent months of secret negotiations, spearheaded by the U.S. Department of State, with the Pentagon’s Office of Strategic Capital brought in during the later stages to identify viable financing mechanisms. Structurally, the U.S. government deliberately chose to participate not as a direct counterparty to the Venezuelan government, but as a shareholder in a private company. The Pentagon plans to acquire equity in NABEP through 'penny warrants'—securing ownership stakes with virtually no major capital outlay. Legally authorized to provide loans and guarantees supporting industries tied to U.S. national security interests, the Office of Strategic Capital’s direct equity involvement is widely viewed by external observers as a significant expansion of its mandate. NABEP is led by Venezuelan businessman Alejandro Betancourt. Reports indicate Betancourt maintains close ties with Venezuela’s interim president, Rodríguez, and has faced money laundering investigations in Spain and Switzerland—though no formal charges were ever filed. His company has become Venezuela’s second-largest private oil producer over the past two years—just behind Chevron. Reportedly, the Trump administration selected Betancourt because his firm was already operating locally and maintained deep connections with senior Venezuelan officials. Secretary of State Rubio hailed the agreement as a 'major victory,' claiming it would secure low-cost oil from the Western Hemisphere for Americans and suppress domestic fuel prices. Rodríguez, meanwhile, stated the agreement would deliver over $100 billion in investment, more than $209 billion in tax revenue, and substantial job creation for Venezuela—while emphasizing that 'Venezuela retains full ownership and sovereignty over its resources.' Strategic Rationale: Tightening Iranian supply compels urgent U.S. action According to reports, the deal’s urgency stems from the confluence of multiple pressures. Iran’s ongoing restrictions on oil transit through the Strait of Hormuz have kept global energy prices elevated, prompting the Trump administration to urgently secure a long-term, stable crude source within the Western Hemisphere.

Pentagon’s Venezuelan Oil Partner Nabep Adds Rig, Boosts Output

1 day ago

North American Blue Energy Partners Inc., a Pentagon partner, is deploying a sixth drilling rig to boost Venezuelan oil production to over 223,000 barrels per day following a $1 billion reinvestment.

bloomberg

2026-10-22

Pentagon’s Venezuelan Oil Partner Nabep Adds Rig, Boosts Output

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