The White House has confirmed that North American Blue Energy Partners, or NABEP, plans to invest as much as US$100 billion in Venezuelan petroleum infrastructure under an agreement covering 17 oil projects.
The US Office of Strategic Capital will receive a 35 per cent equity interest in NABEP’s corporate parent. The American government will also have access to 20 per cent of production at cost, while the State Department will hold a right of first refusal over the remaining 80 per cent.
This is a material clarification from earlier reports that the United States had obtained undefined “control” over approximately 65 billion barrels of Venezuelan reserves. It identifies the corporate vehicle through which that influence would operate and establishes how Washington could obtain crude without directly owning the resources.
Venezuela will retain ownership of the oil, and the concessions will be governed by its hydrocarbons legislation. The White House expects the projects to generate approximately US$200 billion in royalties and taxes during their first 25 years.
It was reported that NABEP received 14 new contracts and will control 17 projects in total. Some of the fields had previously been operated by Chinese and Russian interests, indicating that the arrangement is intended to shift a significant portion of Venezuelan oil production towards American commercial and strategic control.
