the news now
This is a new development in a story we have covered before · earlier coverage

United States and Venezuela Announce Major Oil Agreement to Control 65 Billion Barrels

morning · · thread: US Refineries Now Process Half of Venezuelan Oil Output as Production Deals Loom

14 sources across 10 countries

Who reported this

  • BBC News United Kingdom · Centre · Public · Licence fee, royal charter
  • Financial Times United Kingdom · Centre · Nikkei Inc.
  • Reuters United Kingdom · Centre · Thomson Reuters Corporation
  • G1 Brazil · Centre-left · Grupo Globo (Marinho family)
  • Folha de S.Paulo Brazil · Centre · Grupo Folha (Frias family)
  • CNN United States · Centre-left · Warner Bros. Discovery
  • Bloomberg United States · Centre · Bloomberg L.P. (Michael Bloomberg)
  • El Espectador Colombia · Centre-left · Grupo Santo Domingo
  • France 24 France · Centre · Public · France Medias Monde (French state holding)
  • The Japan Times Japan · Centre · News2u Holdings
  • NRC Netherlands · Centre · Mediahuis
  • Aftenposten Norway · Centre-right · Schibsted, Tinius Trust foundation
  • El Pais Spain · Centre-left · Grupo PRISA
  • Neue Zuercher Zeitung Switzerland · Centre-right · Dispersed shareholders, no controlling stake

What the colours mean

  • Left
  • Centre-left
  • Centre
  • Centre-right
  • Right
  • A hatched block means the outlet is affiliated with, or controlled by, a state.

Political lean describes where an outlet sits within the politics of its own country. It is never a position on a single global scale.

Political lean is comparable inside one country and not across them, which is why the bar groups by country first. Publicly funded broadcasters are not marked as state-linked.

The owner of each outlet is listed as a matter of record, not as a judgement about the outlet.

President Donald Trump announced a historic oil agreement with Venezuela that grants the United States control over more than 65 billion barrels of proven oil reserves. This amount represents approximately one fifth of Venezuela's total reserves. The deal involves 17 oil projects, 14 of which are new contracts granted by the Venezuelan government. A US backed company, North American Blue Energy Partners (NABEP), will hold operational control of these fields. The US government will receive a 35 percent stake in NABEP, access to 20 percent of production at cost, and a right of first refusal to purchase the remaining 80 percent. Additionally, Washington will have veto power over the board and directors, with a requirement that the majority of board members be US citizens.

The agreement displaces previous interests held by Chinese and Russian firms. Specifically, NABEP will take over fields previously operated by companies including Sinopec, China National Petroleum Corp, and China Concord Resources, as well as a Russian firm. Some projects were also linked to Alex Saab and a relative of Cilia Flores. The deal is intended to redirect oil that previously went to China toward the US market and replenish the US Strategic Petroleum Reserve.

Interim Venezuelan leader Delcy Rodriguez stated the deal could generate 209 billion dollars in revenue for the Venezuelan state, with a production goal of 1.5 million barrels per day. However, the duration of the contract is disputed: US sources mention a 100 year term, while Rodriguez cited a maximum of 25 years. NABEP is currently controlled by Venezuelan businessman Alejandro Betancourt, who was previously associated with the oil tycoon Harry Sargeant.

Analysts and officials have expressed skepticism regarding the immediate impact of the deal. Former Energy Secretary Dan Brouillette and other experts noted that the agreement will not lower US gas prices in the near term due to the need for refining and pipeline capacity. Some reports highlight significant risks, including the dilapidated state of Venezuelan infrastructure and the lack of a democratically elected government. There are also unanswered questions regarding the source of 100 billion dollars in expected private investment and the legal validity of the treaty under US and Venezuelan law.

How each side framed it

Centre-left
These outlets emphasized the controversial nature of the intermediaries involved and the potential for privatization of the Venezuelan oil sector.
Centre
These outlets focused on the operational details of the deal and the strategic displacement of Chinese and Russian interests.
Centre-right
These outlets framed the deal as a risky political gamble with limited immediate impact on global oil markets or domestic gas prices.

Sources

100% of the statements in this article were traced back to the source articles listed above.