Venezuela grants U.S.-backed oil firm NABEP 100-year concessions for 17 oil fields, White House says
Venezuelan interim authorities have granted North American Blue Energy Partners 100-year concessions for 17 oil fields, White House says.
On Monday, the White House announced that Venezuela had granted North American Blue Energy Partners (NABEP) 100-year concessions for 17 oil fields. This deal, struck in the days following the US and Venezuela's agreement, saw the former gain partial control over Venezuela's oil reserves. NABEP, a privately held oil company and the second largest Venezuelan oil producer, will pay approximately $200 billion in royalties and taxes within the initial 25 years.
The oil fields are to be operated by a private entity created by NABEP and the US, with NABEP investing around $100 billion in new oil infrastructure. This investment would likely boost economic growth, create high-paying jobs, and generate tens of billions in broader economic activity, according to the White House. The US State Department holds the right to purchase 80% of the oil NABEP produces, with a guarantee to buy 20% at cost.
The Pentagon's Office of Strategic Capital has been given a 25% stake in the company's equity. The deal, claimed by the White House to be at "zero cost," includes U.S. vetoes on the board of the private entity and the agreement's jurisdiction under U.S. law.
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