Venezuela oil deal: NABEP gets 100-year concessions to pay $200 billion in royalties and taxes in first 25 years | Today’s news

The White House revealed on Monday (local time) that Venezuela has awarded North American Blue Energy Partners (NABEP) 100-year concessions for 17 oil fields.

On Monday, the White House released the terms of the deal, which comes days after Washington DC and Caracas reached an agreement that gave the former state partial control of Venezuela’s oil reserves.

Private oil company NABEP is Venezuela’s second largest oil producer and proven operator and will pay around $200 billion in royalties and taxes in its first 25 years, the White House revealed.

The Venezuelan oil fields to which it has acquired rights will be operated by a private company that the US is creating in a joint venture with NABEP, owned by Venezuelan tycoon Alejandro Betancourt.

NABEP has created a plan to rapidly increase oil production from the oil fields they will control, in which the company plans to invest approximately $100 billion to build new oil infrastructure in the country that will not only help kick-start economic growth but also support thousands of high-paying jobs in the country. The White House said it would also lead to tens of billions in broader economic activity, Reuters reported.

The concessions granted to the company are in compliance with Venezuela’s hydrocarbon laws, the White House also said.

The US State Department has been granted the right of first refusal to purchase 80% of the oil that NABEP will produce.

The Pentagon’s Office of Strategic Capital has acquired a 25% equity stake in its parent company, according to Reuters.

This is a developing story. Check back later for more updates.