Trump Administration Taking 35% Equity Stake in New Venezuelan Oil Company
The Trump administration has confirmed it will be taking a 35% equity stake in a new oil company that will drill across more than a dozen oil fields in Venezuela.
TL;DR
- The Trump administration will acquire a 35% equity stake in NABEP, a company operating in Venezuela.
- NABEP has been granted 100-year concessions for 17 Venezuelan oil fields with approximately 65 billion barrels of proven reserves.
- The U.S. government will have 'power governance rights' and 'economic ownership' over the oil fields.
- The State Department can purchase oil at production cost and has the right of first refusal on remaining production.
- The U.S. government will hold veto power over board appointments, and the majority of the board must be U.S. citizens.
- Concerns have been raised about the deal's secrecy and lack of competitive process.
- There are discrepancies regarding the length of the concession agreement between U.S. and Venezuelan officials.
- Officials state the deal is for national security purposes and aims to lay groundwork for Venezuela's future government.
- The ability to use Venezuelan crude in the Strategic Petroleum Reserve is questioned due to its sulfur content and API gravity.