NABEP plans $100 billion Venezuela investment, targets 1 million b/d oil output

North American Blue Energy Partners said Sept. 1 it plans to invest nearly $100 billion to expand its Venezuelan operations and lift oil production above 1 million b/d, under an agreement with the US government that gives Washington rights to a 35% stake in the company and preferential access to its crude.

The agreement with the US departments of State and Defense would support an expansion in the Lake Maracaibo region and the Orinoco Oil Belt, NABEP said in a statement. The company said it currently controls marketing rights over more than 65 billion barrels of Venezuela's P1 reserves.

The US government will have rights to a 35% interest in NABEP while the company retains operational control. Washington will also have preferential access to purchase 20% of production at cost, the company said in the statement.

According to a White House fact sheet, the arrangement also gives the US government veto power over board appointments, requires a majority of NABEP directors to be US citizens and grants Washington a right of first refusal over the remaining 80% of the company's production.

The agreement covers 17 Venezuelan oil projects under 100-year concessions. Fourteen of those projects are newly awarded, including assets previously operated by Chinese and Russian companies.

US President Donald Trump described the agreement as "the biggest oil deal in world history" in a post on the Truth Social network on Aug. 28.

NABEP said it plans to rapidly expand production from assets in Lake Maracaibo and the Orinoco Belt, with a near-term goal of exceeding 1 million b/d.

The company said it has already increased production from around 18,000 b/d to more than 200,000 b/d over the past two years after investing nearly $1 billion of its own capital.

"This operation will allow us to unlock that potential for the substantial benefit of both Venezuelans and Americans," CEO Alejandro Betancourt said.

The planned investment would go toward expanding Venezuelan oil and gas production capacity and infrastructure. The at-cost crude made available under the agreement could help replenish the US Strategic Petroleum Reserve and supply military and other sensitive government needs, the White House said.

The White House also said NABEP is expected to pay roughly $200 billion in royalty and tax payments during the first 25 years of the concessions, providing a significant source of revenue for Venezuela as the country seeks to rebuild its economy.

The announcement comes amid a broader push by Venezuela to expand foreign participation in its oil sector. Chevron is close to signing a new agreement with the Venezuelan government covering multiple areas, including production growth, according to a source familiar with the negotiations. The US major has said it expects to increase Venezuelan crude output by as much as 50% by the end of 2028 after growing production from about 40,000 b/d several years ago to roughly 280,000 b/d today.

Sweden-based KEO Energy also recently signed an operating agreement with state-owned PDVSA for the PetroUrdaneta joint venture in western Venezuela, one of several efforts by Caracas to attract foreign capital, technology and operational expertise as the country's oil production recovers.