Trump touted a record Venezuela oil deal. Now reality is setting in
USO•North American Blue Energy Partners says it will quadruple Venezuelan oil output to more than 1 million barrels per day, but workers and experts cited financing, staffing and infrastructure challenges. An oil expert said about 10 billion of the deal’s stated 64 billion barrels of reserves could realistically be developed within 25 years.
1. Ambitious production target
North American Blue Energy Partners (NABEP), a little-known firm led by Venezuelan businessman Alejandro Betancourt, says it will raise output to more than 1 million barrels per day from about 224,000 in mid-October. Its agreements cover 17 Venezuelan oilfields, and a deal with Washington grants the US a 35% stake in the company’s corporate parent and the right to buy 20% of output at production cost.
2. Operational hurdles
Eight people familiar with NABEP operations told Reuters the company was carrying debt to contractors and struggling to hire workers and repair infrastructure. NABEP says it has invested $1 billion of its own capital since 2024 and plans to increase annual reinvestment by as much as 50%; it says it has no current plans to raise outside funding. NABEP spokesperson Terry Wade said the company was on track and that its supplier base was expanding.
3. Reserves and field conditions
Oil expert Francisco Monaldi said only about 10 billion of the 64 billion barrels cited by Trump could realistically be developed within the 25-year term allowed by Venezuelan law, and only if everything aligns. NABEP says it has lined up 60 rigs and 70 pieces of heavy machinery, while workers described idle machinery, damaged facilities and delayed supplier payments at Petrozamora. PDVSA’s vice president said NABEP could reach its 1 million-barrel target in six to seven years.
