The Trump administration announced on Monday what it heralded as "the largest oil deal in world history": U.S. majority control over more than 65 billion barrels of proven oil reserves in Venezuela, funneled through a private company and at no cost to taxpayers.
Nevertheless, beneath the triumphant headlines, the agreement released by the White House is riddled with contradictions, legal loopholes, and unanswered questions that no official document has clarified so far.
Signed by Secretary of State Marco Rubio and Secretary of War Pete Hegseth, the pact grants the private company North American Blue Energy Partners (NABEP) concessions over 17 Venezuelan oil fields.
In exchange, NABEP relinquished a 35% equity stake in its parent company to the Department of War and granted the Department of State the right to purchase at production cost 20% of its assured output, plus the right of first refusal on the remaining 80%.
The U.S. government also secured veto power over any board appointments at NABEP, with the majority of that board required to be composed of American citizens. The agreement falls under U.S. law and is subject to the jurisdiction of American courts.
The Discrepancies in the Agreement's Duration
However, one of the initial visible cracks is the very duration of the agreement: while the White House refers to 100-year concessions and $200 billion in royalties and taxes over the first 25 years of operation—intended to fund reconstruction and social development programs—Venezuelan interim president Delcy Rodríguez publicly claimed the agreement only spans 25 years.
The full contract has not been disclosed, leaving no way to verify which version is accurate.
Legal and Operational Ambiguities
Another fundamental inconsistency comes from within the Pentagon itself. According to a spokesperson quoted by Reuters on Tuesday, the Office of Strategic Capital at the Department of War does not take equity stakes in private enterprises, casting doubt on the exact legal mechanism through which Washington holds this 35% of NABEP.
The figure behind NABEP adds another layer of opacity to the deal. Venezuelan businessman Alejandro Betancourt López, 46, and owner of the company, faces ongoing legal cases for alleged money laundering in Spain and Switzerland.
NABEP was established in April 2024, and in just two years, it scaled from producing about 18,000 barrels daily to approximately 200,000, a growth not detailed in any official document.
The White House projects that NABEP will invest up to $100 billion in Venezuelan oil infrastructure and pay $200 billion in royalties and taxes during the first 25 years of operations.
Geopolitical Implications and Reactions
Most of the fields the company will operate were previously controlled by Russian and Chinese firms or allies of the Chavista regime, according to the official statement, which noted that these actors "plundered Venezuela's resources to benefit adversaries like Cuba, Russia, and China."
This reference to Cuba is not merely rhetorical. Since the capture of Nicolás Maduro on January 3, 2026, Venezuela halted the shipment of about 35,000 barrels of oil per day to the island, which it had received under barter agreements. The new framework makes this cut permanent and frames it as a reaffirmation of the Monroe Doctrine.
The political response was mixed. Congresswoman María Elvira Salazar initially criticized the deal, considering Delcy Rodríguez "the wrong person to sign it," and warned that Venezuela is "only buying time." However, she later called it "a great deal for the United States and the Venezuelan people," contingent on the holding of free elections.
In Caracas, Chavista sectors protested against the pact, while the Venezuelan opposition labeled it a predatory cession of sovereignty.
The U.S. is also sponsoring reconciliation talks between the 2015 National Assembly and the interim Venezuelan authorities, a process that has already led to judicial reforms and the release of hundreds of political prisoners.
New meetings are scheduled for September, suggesting that the oil deal is just one piece of a broader political negotiation whose full terms have yet to be revealed.
Understanding the Venezuela-U.S. Oil Deal
What does the Venezuela-U.S. oil deal entail?
The deal grants U.S. majority control over more than 65 billion barrels of oil in Venezuela through a private company, NABEP, without taxpayer cost.
What are the concerns surrounding the agreement?
Concerns include legal inconsistencies, the duration of the agreement, and the lack of clarity on how Washington holds a 35% stake in NABEP.
Who is Alejandro Betancourt López?
Alejandro Betancourt López is a Venezuelan businessman and owner of NABEP, facing legal issues for alleged money laundering in Spain and Switzerland.