Trump called the Venezuela oil agreement the biggest oil deal in history, but Reuters interviews with industry sources suggest delivering it will be far harder than advertised. North American Blue Energy Partners aims to lift output fourfold, yet it is reportedly carrying contractor debt and struggling to hire.
President Donald Trump called it the biggest oil deal in history: 17 Venezuelan oilfields holding some 64 billion barrels of reserves, handed to a single company. That company, North American Blue Energy Partners (NABEP), says it will lift oil output fourfold to more than 1 million barrels per day (bpd), up from about 224,000 bpd in mid-October.
Industry sources doubt the output target
Reuters interviewed 15 oil workers, contractors, financiers and industry experts, and they said the target will be far harder to hit than Trump and NABEP have suggested. Eight of them said the company was carrying debt to contractors and struggling to hire staff and repair infrastructure.
Even the headline reserves figure may overstate the prize. Francisco Monaldi of Rice University's Baker Institute told Reuters that only about 10 billion barrels can realistically be developed within the 25-year term Venezuelan law allows for oil projects.
NABEP disputes the picture. According to Reuters, spokesperson Terry Wade said suppliers will be paid: "All invoices are being paid, and any disruption will be addressed," as the company migrates to a new payment system.
Wells need repair and funding is a question
Venezuela's overall crude output has stayed at about 1.2 million bpd in recent months, according to official figures. About 80% of roughly 4,000 inactive wells in the Maracaibo basin need repair, and PDVSA Vice President Jovanny Martinez said NABEP could reach its target in six to seven years.
Satellite analysis from a Venezuela-focused intelligence firm in early October found no drilling infrastructure at seven of the 17 fields. NABEP says it has lined up 60 rigs and 70 pieces of heavy machinery to arrive in batches.
The company says it has invested $1 billion of its own capital since 2024 and has no current plans to take on additional debt or sell equity stakes. Five industry experts told Reuters that developing 17 large oilfields simultaneously would challenge even Chevron, ExxonMobil or ConocoPhillips.
Washington appears to call the shots
The first crude oil cargo under the deal reached Texas on Tuesday. A White House official said the government had received the 1 million barrels at no cost.
NABEP first said the oil was delivered under Washington's right to buy a portion of production at cost, and later said it gave the shipment to the US at no cost.
Source: Reuters via Investing.com
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