The US Venezuela oil deal would give the US government a passive 35% stake in a private Venezuelan oil company led by Alejandro Betancourt, along with preferential commercial rights, the Wall Street Journal reports.
Under the proposed arrangement, Betancourt’s North American Blue Energy Partners would receive development rights for up to 100 years across 17 oil fields. The fields are said to contain about 65 billion barrels of oil, or roughly one-fifth of Venezuela’s reserves. Washington would also receive priority rights to purchase 20% of the production at cost.
US officials decided to pursue direct investment after US energy companies declined to commit capital at the speed and scale sought by the administration, according to people involved in the negotiations.
Venezuela sets out production and fiscal terms
Interim President Delcy Rodriguez said a separate deal with US oil companies would cover 17 prospective fields and provide a 25-year production concession. The plan has a production target of 1.5 million barrels per day.
The Venezuelan government has proposed a sale price of $69 per barrel. Under the terms outlined by Rodriguez, the government would make $19 per barrel in profit, while operating oil companies would also face a 16% field-use royalty and a 34% income tax.
Caracas expects the proceeds to be added to the $209 billion in profits announced earlier this week.
President Donald Trump said on social media on August 28 that the US had reached an agreement with Venezuela to obtain “majority control” of more than 65 billion barrels of proven oil reserves through cooperation with private companies. Trump said the arrangement would cost US taxpayers nothing, more than double US oil reserves, increase supply and significantly lower US gasoline prices for an extended period. He did not disclose further details, while the White House had not issued an official statement.
Meanwhile, Chevron is close to finalizing talks to bring its Venezuelan joint ventures under Venezuela’s new oil policy framework. The company is also negotiating to expand the blocks linked to its existing Venezuelan projects.
