President Trump announced that ExxonMobil is planning to do business in Venezuela.
“We have Exxon going in, we have Chevron going in, we have our big oil companies going in, and everybody’s bidding,” Trump said. “We’re making a fortune, and they’re making a fortune. They’re starting to make real money.”
The White House described oil developments in Venezuela as the “biggest oil deal in world history,” saying President Trump has “secured U.S. majority control of more than 65 billion barrels of proven oil reserves in Venezuela – vastly expanding our current U.S. territorial proven reserves of roughly 46 billion barrels.” The effort secures the United States’ energy dominance and “gives the U.S. government powerful governance rights, economic ownership, and guaranteed low-cost off-take from a new private Venezuelan oil champion, which will be the second-largest private oil company by reserves in the world.”
According to the fact sheet, the Venezuelan interim authorities have granted North American Blue Energy Partners (NABEP) 100-year concessions for 17 oil fields. NABEP has also granted the Department of War a 35% equity stake.
The announcement comes as President Trump shared over the weekend that he intends to use Venezuelan crude to replenish the Strategic Petroleum Reserve, which he claimed Biden had “virtually emptied” during his time in office.
Earlier this year, Chevron announced that it reached an asset swap agreement with Venezuelan entities. Under the agreement, Chevron will receive an additional 13.21% working interest in the Petroindependencia, S.A. joint venture, bringing its total stake to 49%, the company explained. Petropiar, S.A. joint venture, has been given the rights to develop the Ayacucho 8 area located in the Orinoco Oil Belt of Venezuela.
