Washington: The White House on Monday announced that it is partnering with North American Blue Energy Partners as part of President Donald Trump's push to access Venezuela's oil sector, establishing an agreement that will grant the Pentagon a stake covering roughly one-fifth of the nation's massive petroleum reserves.

The Trump administration released additional specifics regarding the arrangement on Monday evening, days after Trump proclaimed what he termed the largest oil deal in history. Whilst the broad deal has drawn scepticism from analysts who argue it will take years to restore Venezuela's output, Trump and his advisers are promoting it as an opportunity to build a new energy powerhouse in the Western Hemisphere.

As part of the framework, the US is creating a private enterprise within a joint venture alongside NABEP, a detail the White House had withheld for several days. NABEP, owned by Venezuelan entrepreneur Alejandro Betancourt, already operates as the second-largest entity in Venezuela after Chevron.

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Venezuela's acting President Delcy Rodríguez is granting the firm 100-year rights across 17 oil fields holding proven reserves of 65 billion barrels. Many of those assets were previously controlled by Russian or Chinese enterprises, according to the White House.

The terms will provide the Pentagon with a 35 per cent equity share in the enterprise, whilst the State Department secures a guarantee to acquire 20 per cent of the production at cost, the White House revealed on Monday. Betancourt's company has committed to investing 100 billion US dollars in new energy infrastructure.

Trump has pursued efforts to expand Venezuelan oil output since the January military operation that captured former President Nicolás Maduro on federal narcoterrorism and drug trafficking charges.

The White House asserted the arrangement would proceed “at zero cost” to the US, adding that the administration will retain veto power over board members, the majority of whom must be American citizens.

“NABEP will have reputable US auditors, lawyers, and advisers and the US government's agreement with NABEP is governed by US law and is subject to the jurisdiction of US courts,” the White House stated in an official fact sheet outlining the deal.

Former US government energy advisers have warned that the initiative carries significant political risk, noting that future governments in either Venezuela or the United States could seek to challenge the arrangement.

AP