The US and Venezuela Reach "Century Lease" Oil Agreement, While ExxonMobil and Other Giants Remain Cautious

BlockBeats News, September 1st, the U.S. government reached a 100-year lease agreement with the private oil company North American Blue Energy Partner (NABEP), covering 17 oil fields in Venezuela with an estimated 65 billion barrels of crude oil reserves. According to the agreement, the U.S. government will hold a 35% stake in NABEP's parent company and receive a 20% share of the physical oil production plus a right of first refusal for the remaining production. NABEP plans to increase Venezuela's daily oil production from the current approximately 170,000 barrels to over 1 million barrels.

However, concerns have been raised among potential investors due to the complex relationship between the Venezuelan businessman behind the agreement, Alejandro Betancourt, and the Venezuelan government, as well as past investigations by the U.S. and Europe. Industry insiders say that major oil companies in contract transfer negotiations "do not want to sit at the same negotiating table with Betancourt." ExxonMobil declined to comment, while ConocoPhillips reiterated that the investment decision will depend on "policy stability" and "rule of law principles."

Meanwhile, companies such as Chevron, Eni, and GeoPark Colombia are advancing Venezuelan projects through existing joint venture structures. Analysts believe that Venezuela's ability to rapidly increase production still depends on whether the U.S. can attract oil giants like ExxonMobil and ConocoPhillips, which have financial and technological advantages, back to the country.

On the other hand, Russian energy supply is facing a decline. A government draft obtained by Reuters shows that Russia expects its crude oil production to fall to 494 million tons in 2026, equivalent to a daily average of 9.88 million barrels, the lowest level in 17 years. Due to Western sanctions and drone attacks on refinery facilities in Ukraine, Russia's refining capacity has been affected, leading to fuel export restrictions. Crude oil and refined oil product exports are expected to further decline from 2027 to 2029, potentially shifting the global energy supply pattern further towards the Western Hemisphere.