President Donald Trump touted a sweeping bilateral energy agreement with Venezuela, announcing the U.S. would secure vast proven oil reserves and a direct stake in production. Yet newly revealed contract terms and local reporting show the deal relies on disputed reserve data and faces steep operational hurdles on the ground.
Inside the Secret 18-Page Agreement Signed in Washington
Public pronouncements from the White House painted a picture of broad energy dominance, but the underlying documents tell a different story. Secretary of State Marco Rubio and Defense Secretary Pete Hegseth signed an 18-page strategic partnership agreement that favors U.S. interests while insulating the arrangement from future political shifts in Washington and Caracas, according to ProPublica’s review of the secret text. Marked as a sensitive government document, the pact bypasses state-owned Petróleos de Venezuela, SA due to its long history of debt and corruption. Instead, the administration partnered directly with North American Blue Energy Partners, a private firm controlled by Venezuelan businessman Alejandro Betancourt.
The Pentagon secured a 35% stake in NABEP’s Barbados-registered parent company for a nominal price of a penny per share through warrants valid for 75 years, paying nothing upfront. The governance structure installs a seven-member board for an initial 15-year term requiring a majority of U.S. citizens, while Cibercuba reported that some investors and shareholders remain hidden behind offshore registration laws. Ousting Betancourt as executive director requires five votes on the board, and any legal disputes must be settled in the federal court for the Northern District of Texas.
Months of work on the arrangement culminated when President Donald Trump announced on Truth Social that the United States had entered into an agreement with Venezuela on the biggest oil deal in world history. Two days following the public announcement, officials signed the accord, which was executed by Secretary of State Marco Rubio, Defense Secretary Pete Hegseth, Alejandro Betancourt, and Alvarado.
Disputed Reserve Figures and the Reality of Venezuelan Oil Fields
Trump asserted that the agreement would secure vast amounts of proven reserves to refill strategic stockpiles and lower fuel prices. Energy experts, however, caution that Venezuela’s baseline estimate of 303 billion barrels in the ground is inflated. Realistic assessments place actual proven reserves closer to 60 to 120 billion barrels, with Francisco Monaldi of Rice University estimating that only 10 billion barrels can realistically be developed within the 25-year limit permitted by Venezuelan law.
Many designated fields inside the Orinoco Belt and Lake Maracaibo are either nearly depleted or facing infrastructure challenges. Independent auditing firms historically refused to sign off on government calculations for these remote, technically challenging reserves, relying instead on self-reported figures that critics argue have remained suspiciously stagnant over time. The math behind Venezuela’s figures started taking shape more than ten years ago when the late President Hugo Chávez sought to measure Orinoco Belt reserves against the backdrop of rising global crude prices and unchecked state spending. Energy Secretary Chris Wright addressed headlines regarding the resources, while Venezuelan legal expert Jose Ignacio Hernández dismissed administration claims as propaganda.
Operational Roadblocks and Local Industry Pushback
Delivering on output targets requires repairing inactive wells and securing heavy equipment, power plants, and trained staff. While NABEP announced plans to quadruple production to more than 1 million barrels per day from roughly 224,000 bpd in mid-October, industry experts interviewed by Reuters warned that executing such a vast simultaneous overhaul would challenge even multinational oil majors.
Field workers and contractors at Petrozamora reported idle heavy machinery, oil leaks, and delayed payments, though company representatives insisted supplier networks are expanding and all invoices are addressed. Former energy officials and returning political figures voiced skepticism over the lack of transparency. Interim President Delcy Rodríguez defended the pact, while PDVSA Vice President Jovanny Martinez stated that NABEP could meet its production targets within six to seven years. White House spokeswoman Taylor Rogers stated that production is growing and the deal is already delivering results for the American people, and NABEP reported that it directly employs about 5,000 people alongside more than 10,000 contractors.
Of course we want investment. The issue is how and with whom.
Maria Corina Machado, Opposition leader
The First Crude Cargo Arrives in Texas
The first shipment of 1 million barrels arrived at the port of Corpus Christi, where Trump welcomed the cargo as a gift delivered at no cost to U.S. taxpayers. While White House officials defended the arrangement as an immediate return on investment, Trump remarked at the port regarding the broader geopolitical shift.
Trump on Venezuela: "It was a violent, incredible, beautiful raid" pic.twitter.com/X0ym90ClGK
To the victor belongs the spoils, right?
President Donald Trump
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