The Daily Journal.- North American Blue Energy Partners (NABEP), the oil company backed by the Donald Trump administration to develop oil fields in Venezuela, expects to increase its crude production to 500,000 barrels per day (bpd) by the end of 2028, more than double the approximately 200,000 bpd it currently produces, according to a Bloomberg report.
In an email to the specialized news outlet, the company said it has so far financed its expansion in Venezuela through internally generated cash flow and that potential outside investment could accelerate its growth.
“The agreement with the U.S. government only accelerates the trajectory” the company had already planned, NABEP said.
Until just a few weeks ago, NABEP remained relatively unknown outside the industry. Over the past two years, however, the company has increased its production more than tenfold and has become Venezuela’s second-largest private crude oil producer, behind Chevron.
NABEP attributed that growth to the “significant free cash flow” generated by its operations in the country.
“Before our agreement with the U.S. government, we were already on track to maintain that momentum,” the company said.
“This partnership, and the outside investment it will bring, only accelerate the trajectory we were already pursuing,” it added.
A long-term agreement
NABEP gained prominence after the Trump administration signed an agreement with the company that it described as “the largest oil deal in world history.”
The deal grants concessions to develop 17 oil fields, with estimated proven reserves of about 65 billion barrels. The agreement also gives the U.S. government a 35% stake.
The Trump administration reached the agreement with NABEP after expressing frustration over the slow pace at which major international oil companies, including ExxonMobil and ConocoPhillips, were advancing their plans in Venezuela.
Washington therefore chose to partner with NABEP and its CEO, Alejandro Betancourt, to promote the development of the oil fields under the new contractual framework introduced by the Venezuelan government.
Betancourt built part of his fortune during the government of the late Hugo Chávez. In 2009, he co-founded Derwick Associates, a company that secured multimillion-dollar contracts to supply emergency power plants without competitive bidding during years of chronic blackouts. Venezuelan NGO Transparencia Venezuela estimated that the contracts involved about US$2.9 billion in overpricing.
With information from Bloomberg
