US secures 100-year concessions in Venezuela oil deal: White House

The United States has secured significant concessions in a new energy deal with Venezuela, granting Washington majority control over 65 billion barrels of proven oil reserves. The agreement, announced by the White House on Friday, involves North American Blue Energy Partners (NABEP) acquiring a 35% stake in its corporate parent at no cost to the American taxpayer. The US State Department has the right to purchase 20% of the production at cost.

The deal, which has drawn attention for its duration discrepancy, is said to provide a 100-year concession for 17 specific oil fields, according to the White House. This information contradicts interim President Delcy Rodriguez's earlier announcement of a 25-year deal. The interim government, which came to power in January following a US military operation, is expected to receive $200bn in royalties and taxes over the first 25 years to fund reconstruction and social development.

The agreement is governed by US law and subject to American courts. NABEP's board of directors must be majority US citizens, and Washington retains veto power over any board appointments. The deal is projected to bring up to $100bn in new infrastructure investment to Venezuela to boost production after years of underinvestment and mismanagement under previous regimes. The output will be processed through US refineries, potentially creating thousands of domestic jobs.

The White House framed the deal as a re-establishment of the Monroe Doctrine, aiming to counter foreign interference in the Western Hemisphere, particularly in fields previously operated by Russian and Chinese firms. This move comes as the Strait of Hormuz, a crucial oil transit point, is impacted by the US-Israeli war on Iran, which began on February 28.