US gains control of Venezuelan oil

What's happened

The US has secured majority control of more than 65 billion barrels of Venezuelan crude through a 100‑year concession and a joint venture with private partners, and will receive 55% of output at cost to refill the Strategic Petroleum Reserve. The pact has prompted criticism in Venezuela and raised uncertainty over China’s claims and loan repayments.

What's behind the headline?

What this deal does

• The US will control 55% of output from a joint venture holding a 100‑year concession to 17 Venezuelan fields containing about 65 billion barrels of reserves.
• The administration will receive that share at cost and plans to use it to refill the Strategic Petroleum Reserve.

Who benefits and who loses

• The US government will gain direct access to large crude volumes and a reliable low‑cost supply for the reserve.
• Private partners, including North American Blue Energy Partners (NABEP) and Alejandro Betancourtlinked entities, will gain long‑term development rights; NABEP is planning to lift production from roughly 200,000 to 500,000 barrels a day by end‑2028 and has said outside investment will accelerate growth.
• China and Russia face uncertainty over existing loans and contracts; Beijing was previously Venezuelas largest buyer and creditor and now risks losing claims on future revenue.

Strategic logic and consequences

• The US is prioritising supply growth: Energy Secretary Chris Wright has said the solution to shortages is to grow supply, and the White House has framed the pact as ensuring low‑cost crude to the US.
• This will increase US leverage in the hemisphere and over global crude flows; Venezuelas role within OPEC is now uncertain and its departure would have symbolic weight even if its production remains exempt.
• The arrangement will force rapid contract restructuring in Venezuela; Washington is reconsidering existing agreements and may revoke some contracts tied to sanctioned individuals and foreign firms.

Forecast

• Production will rise only if companies commit capital and drilling proceeds; NABEPs internal cash flow has funded growth so far but outside investment will be needed to hit 500,000 b/d by 2028.
• Legal, diplomatic and commercial disputes over loan repayment and previous contracts will persist and will slow some projects; China and other creditors will press for recognition of claims and compensation.

Bottom line

The deal will deliver immediate political control over Venezuelas reserves and a potential pathway to higher output, but turning reserves into sustained barrels will require capital, firm contracts and resolution of competing claims.

How we got here

The US has been moving to open Venezuelas oil sector since January, when officials captured former president Nicolás Maduro and backed an interim government. The arrangement grants a long lease over 17 fields and aims to boost production that collapsed under prior sanctions and mismanagement.

Our analysis

Bloomberg has provided the most detailed, contemporaneous reporting: it has reported the White House factsheet and the administrations plan to receive 55% of output at cost for the Strategic Petroleum Reserve, noting that the pact was signed by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. Bloomberg has also published multiple briefings that describe the USs wider effort to reassign and potentially revoke existing contracts in Venezuelas Orinoco Belt and to push private firms to develop 17 fields. For example, Bloomberg reported that officials are "considering revoking" contracts and will showcase up to 17 oil and gas agreements during Energy Secretary Chris Wrights visit to Caracas. Bloomberg has also explored the commercial angle: it quoted NABEPrelated plans to lift production from about 200,000 to 500,000 barrels a day by the end of 2028 and noted the company has so far funded supply increases with internal cash flow and that outside investment "will help accelerate growth." The outlet quoted CEO Patrick Pouyanné in a separate piece describing French company output in Angola to highlight how continued investment is required to sustain production levels. Opinion and regional context have come from The Japan Times and The New Arab. The Japan Times has framed the pact as a campaign to squeeze out China and Russia and reported that the US Energy Secretary declared Beijing "won't have any claims to revenue from new Venezuela production." The New Arab has emphasised criticism of the 100‑year lease and quoted outside analysts calling the deal "colonial" and "shameful," and it reported details from Fortune about the long concession and the US Defence Departments Office of Strategic Capital taking a 35% stake in the new company. Taken together, the sources show a mix of factual detail on the mechanics of the deal (Bloomberg), commercial plans from involved firms (Bloomberg), and political and normative reaction (The Japan Times, The New Arab). Bloomberg grounds the reporting in officia

Go deeper

• How will China respond to losing potential revenue from new Venezuelan oil production?
• Which companies will provide the outside capital needed to lift output to 500,000 barrels a day by 2028?
• Will Venezuela remain a formal OPEC member after this arrangement?

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