The Pentagon will receive a 35% stake in Venezuela's oil project

The US Department of Defense will receive a 35% stake in a Venezuelan oil project. The company in question is North American Blue Energy Partners, which has the capacity to develop 17 oil fields in the country.

Under the agreement, the Pentagon will also have the right to purchase 20% of the oil produced by the company at cost price in the future.

The US government is seeking to increase oil production in Venezuela, though major American companies are still avoiding large-scale investments in the country. Exxon Mobil and ConocoPhillips cite legal risks, security concerns, and the difficult state of the oil sector as the main reasons.

Over the past two years, North American Blue Energy Partners has become the second-largest private oil producer in Venezuela after Chevron.

Venezuela currently produces approximately 1.1 million barrels of oil per day. Fully developing the existing fields could take years.

Source: Investing.com