US SECURES 100-YEAR ACCESS TO MAJOR VENEZUELAN OIL FIELDS UNDER LANDMARK DEAL

The United States has secured long-term access to a significant portion of Venezuela’s oil resources under a major agreement that grants a private Venezuelan-American energy company 100-year concessions to develop 17 oil fields.

The deal, announced by the administration of US President Donald Trump, covers fields with proven reserves of about 65 billion barrels of crude oil and is being presented by Washington as a major step towards expanding American energy security and reviving Venezuela’s struggling oil industry.

Under the arrangement, North American Blue Energy Partners (NABEP) will receive the century-long concessions under Venezuela’s revised hydrocarbons framework. The company is expected to raise private capital and invest heavily in restoring oil production from fields that have suffered years of underinvestment and declining output.

The White House said the agreement would give the United States significant governance and economic rights in the new oil venture, while also securing access to Venezuelan crude for American energy needs. The US government is expected to hold a 35 per cent stake in the company through the Pentagon’s Office of Strategic Capital.

The agreement is expected to involve an investment of about $100 billion in Venezuela’s oil infrastructure. US officials believe the investment could help restore production and generate substantial revenue for the Venezuelan government through taxes and royalties.

According to the White House, the arrangement could generate approximately $200 billion in taxes and royalties over the first 25 years, providing revenue that Venezuelan authorities say could be used to support reconstruction and economic development.

The agreement also gives the United States preferential access to Venezuelan crude. Officials say Washington will have the right to purchase a portion of the oil produced from the fields at cost, while also receiving a right of first refusal on additional production.

The deal is expected to increase Venezuelan crude production significantly. Venezuelan authorities have previously said the initial objective is to raise output to around 1.5 million barrels per day through the development of 17 strategic fields.

Venezuela's interim President, Delcy Rodríguez, has defended the agreement, arguing that it preserves the country's sovereignty over its natural resources while providing the foreign capital and technology needed to rebuild the oil industry.

She said the partnership could help transform Venezuela into a stronger energy producer after years of declining production caused by underinvestment, sanctions and problems within the country's petroleum sector.

However, the agreement has generated considerable controversy inside and outside Venezuela. Critics have questioned the legality and transparency of granting such long-term concessions, while opponents have described the arrangement as an excessive expansion of US influence over Venezuela's strategic natural resources.

Concerns have also been raised about whether the agreement can survive future political changes in Venezuela or the United States. Analysts note that restoring Venezuela's ageing oil infrastructure will require enormous investment and could take years before production reaches the levels being targeted.

The deal also represents a significant shift in the international ownership and management of Venezuelan oil assets. Some of the fields involved were previously operated by Chinese and Russian companies, with the new arrangement expected to increase American influence over Venezuela's energy sector.

For Washington, the agreement is being promoted as a way to strengthen energy security and secure additional supplies of crude. For Caracas, officials say it offers an opportunity to attract investment, rebuild critical infrastructure and generate much-needed government revenue.

Despite the ambitious targets, experts caution that Venezuela's deteriorated oil infrastructure, political uncertainty and the complexity of producing its heavy crude could delay the expected economic benefits.

The agreement nevertheless marks a major new chapter in US-Venezuela relations and gives American interests an unprecedented long-term role in the development of one of the world's largest oil reserves.