Venezuela Oil Deal Names Betancourt as China Protests and Krugman Attacks Concession
VENEZUELA · ENERGY Key Facts —The concessionaire: North American Blue Energy Partners (NABEP), holder of the 100-year lease on 17 Venezuelan oilfields, is controlled by Venezuelan businessman Alejandro Betancourt, who is under investigation by US and European authorities but has never been charged and denies wrongdoing. —The scale: With 14 newly granted contracts — five […] The post Venezuela Oil…
The concessionaire, North American Blue Energy Partners (NABEP), controls 17 Venezuelan oilfields under a 100-year lease. NABEP, led by Venezuelan businessman Alejandro Betancourt, is now the second-largest oil operator in the country, behind Chevron. With 14 new contracts, including previous operations of Chinese and Russian firms, NABEP secures a 35 percent equity stake in its parent company, a guaranteed 20 percent of output at production cost, and first refusal on the rest.
Beijing formally demanded its "legitimate rights and interests" be protected after the US-backed firm acquired fields previously operated by Chinese companies. President Trump suggested Venezuela's OPEC membership is "up to them," as Caracas considers an exit. The airport in Caracas reopened after a two-month closure due to earthquakes, with American Airlines resuming daily Miami service.
Meanwhile, Colombia's richest family aims to enter the Venezuelan oil market. The concession has faced criticism from Nobel laureate Paul Krugman, who called the administration's projections unrealistic, and legal experts who questioned the Pentagon's authority to hold a 35 percent US stake in private companies. Despite US interest, major oil companies remain hesitant to invest in Venezuela due to high political and legal risks.
The deal promises $100 billion in investment and $209.3 billion in royalties and taxes over 25 years.
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