Venezuelan parliament approves major oil deal with U.S.

Under the agreement announced by U.S. President Donald Trump, North American Blue Energy Partners (NABEP) will receive 100-year concessions for 17 Venezuelan oil fields containing more than 65 billion barrels of proven reserves.

The U.S. government will hold rights to a 35% stake in NABEP’s parent company. Washington will also be able to purchase 20% of production at cost and will have the right of first refusal on the remaining 80%. The U.S. will have veto power over appointments to NABEP’s board, while a majority of its directors must be U.S. citizens.

Trump described the agreement as “the biggest oil deal in world history.”

NABEP plans to invest up to $100 billion in Venezuelan oil infrastructure to increase production. The White House estimates the company could pay around $200 billion in taxes and royalties to Venezuela over the first 25 years.

Several fields included in the agreement were previously operated or controlled by Chinese and Russian companies, expanding Washington’s role in Venezuela’s energy sector.

“Venezuela is blessed with an abundance of natural resources, hardworking people and untapped potential,” NABEP chairman Alejandro Betancourt said, adding that the agreement would benefit “both Venezuelans and Americans.”

U.S. Energy Secretary Chris Wright is expected in Caracas on Wednesday as the two countries move to implement the agreement.

Earlier, Qazinform News Agency reported that U.S. President Donald Trump plans to use Venezuelan oil to replenish the Strategic Petroleum Reserve.