US-Venezuela oil agreement puts electoral transition under scrutiny
Conflicting accounts of the deal’s duration, taxation and legal status have raised questions about how resource access will shape Venezuela’s planned presidential elections.
The United States and Venezuela have announced an oil agreement that would give US companies access to reserves across 17 Venezuelan fields, tying the country’s economic reconstruction to an unresolved political transition.
The Trump administration says the arrangement covers 65 billion barrels—about 20 per cent of Venezuela’s reported proven reserves—and will last 100 years. Venezuelan authorities say the concession granted to North American Blue Energy Partners will run for 25 years. The supplied account, published by Al Jazeera Global News, says the final terms remain unclear.
Under the reported structure, North American Blue Energy Partners would operate the fields alongside a 35 per cent US government stake. US authorities would also receive preferential access to production, including the right to buy 20 per cent at production cost and first refusal over the remaining output, or veto power on national security grounds.
Officials have cited an expected US$100 billion investment and approximately US$200 billion in Venezuelan tax payments. However, the calculation is disputed, with the agreement’s discretionary clauses making the eventual tax revenue difficult to determine. The source also notes that the arrangement is unusual under Venezuelan hydrocarbon law and could be challenged by a future elected government.
The deal is unfolding alongside Washington’s stated three-phase plan for stabilisation, economic recovery and political reform. Opposition figures fear that securing control of Venezuela’s oil industry before free elections could strengthen interim President Delcy Rodriguez or delay the vote. US President Donald Trump has also said Venezuela is not prepared for elections in the short term.
Major US oil companies have largely not committed to the project, while any substantial increase in production is expected to take several years and require investment that is not yet guaranteed. The agreement’s durability will therefore depend on its legal standing, the participation of credible operators and whether a future Venezuelan government accepts its terms.
