The United States Discloses Details of Venezuela's Oil Agreement: Obtains Priority Purchase Rights and Board Veto Power

(1) According to a landmark agreement aimed at securing control over Venezuela’s vast oil reserves, the White House on Monday released a situation brief for the first time, detailing the control arrangements for the private operator North American Blue Energy Partners (NABEP). The agreement was made public about seven months after former Venezuelan leader Maduro was captured in a secret military operation. (2) The United States will have the right of first refusal to purchase approximately 80% of NABEP’s oil production, with the related crude oil supplied at production cost. NABEP has obtained a 100-year concession for 17 oil fields in Venezuela. (3) In addition, the United States has also secured a procurement right, obtaining a guaranteed off-take share of 20% from NABEP’s existing and future oil fields to ensure a stable supply of cheap oil.