US backs Trump‑era Venezuela oil pact amid geopolitical tussle
US officials say the Venezuela oil agreement will lower American fuel costs and curb Russian and Chinese influence, even as opposition lawmakers demand full disclosure.
Donald Trump announced a deal that would give the United States majority control of 65 billion barrels of proven oil reserves in Venezuela. The agreement, approved by the country’s government‑dominated National Assembly, hands a 35 percent stake in 17 fields to a US‑backed consortium and promises to more than double Venezuelan output in the coming years.
Deal structure and political backing
The consortium is led by North American Blue Energy Partners (NABEP), the second‑largest private oil firm in the country, headed by Alejandro Betancourt. Under the terms, NABEP will sell 20 percent of its oil at production cost to the United States, and a majority of the board must be US citizens, giving Washington effective veto power.
Marco Rubio told Venezuelan journalist Sergio Novelli in a Spanish‑language interview that the deal is essentially a government‑to‑government contract, with the Defence Department holding a special account to take a share of the assets.
Essentially, this is now an agreement with the US government, specifically involving the Defence Department, which holds a special account allowing it to take possession of a certain percentage of these assets.
Gustavo González López, Venezuela’s defence minister, praised the pact as a path to "prosperity and well‑being for the country". Opposition lawmaker Luis Emilio Rondón warned that the fine print must be examined, while Jorge Rodríguez, head of the National Assembly, argued the money will help Venezuelans.
Implications for oil markets and geopolitics
US officials argue the agreement will lower fuel prices for American consumers and curb the influence of Russian and Chinese firms that previously ran most of the fields. Chevron is slated to announce a major expansion in Venezuela on the same day, signalling broader private‑sector involvement.
The deal arrives as Washington maintains a firm grip on Caracas after the removal of President Nicolás Maduro earlier this year. Critics say the arrangement could entrench US influence in a region already contested by rival powers.
Looking ahead, the US Congress is likely to scrutinise the pact ahead of the November midterm elections, while Venezuelan opposition parties may push for greater transparency. If the agreement proceeds, it could reshape global oil supply dynamics and set a precedent for future US‑backed resource deals in politically volatile markets.
