Experts and political figures have flagged that the oil agreement struck between Caracas and Washington carries the risk of violating Venezuelan law, casting fresh doubt over the deal's long-term viability. Enrique Capriles, a leading opposition figure in Venezuela, said the pact is riddled with "legal and constitutional concerns." Under the terms, the Pentagon would secure a 35% stake in a Venezuelan oil company that has been granted development rights over one-fifth of the nation's petroleum reserves.
Capriles noted that Donald Trump has claimed the agreement includes a 100-year concession period, a contract length that would inherently clash with Venezuela's constitution. In response, interim president Delcy Rodríguez refuted the White House's assertion, stating that all extraction permits are valid for just 25 years. Capriles questioned: "Before handing over no fewer than 65 billion barrels of oil resources to a hand-picked entity with a completely opaque background, why was there no tender process or public auction? This raises both constitutional and legal red flags."
David Goldwyn and Andrea Clabough of the Atlantic Council in Washington pointed out that the notion of a century-long concession "appears to exceed what the constitution permits." The pair argued that "dozens of comparable points of contention" would likely converge on the same outcome: "Legal challenges could be mounted by multiple parties, ranging from existing contract holders to ordinary Venezuelan citizens; of course, a future Venezuelan government could also raise legal objections."
Politicians and analysts also enumerated other scenarios under which the pact might breach Venezuelan law, though they cautioned that only a brief White House fact sheet, rather than the formal contract text, has been made public. One Venezuelan oil industry executive remarked: "This deal is inevitably headed for litigation, either in U.S. courts or, after elections are held in Venezuela, ultimately challenged domestically."
Based on the information disclosed so far, Venezuela's state-owned oil giant, Petróleos de Venezuela, S.A. (PDVSA), is not a party to the agreement. However, José Ignacio Hernández, a Venezuelan legal expert based in the United States, noted that the constitution explicitly assigns PDVSA "the statutory authority to oversee the oil sector," a designation that remained unchanged even after Washington enacted a hydrocarbons law following the arrest of former President Nicolás Maduro in January. He stated: "Private investors cannot directly hold extraction rights; they must operate as contractors for PDVSA and its subsidiaries, or establish joint ventures with the company."
The pact, unveiled by the White House over the weekend, grants control of more than 17 oil fields to North American Blue Energy Partners (NABEP). This firm, controlled by Venezuelan businessman Alejandro Betancourt, can develop these fields independently or issue extraction permits to other third parties. The Trump administration aims to accelerate investment in Venezuela's petroleum sector through this arrangement. Parties interested in investing in these 17 fields will be closely monitoring the agreement's legal and political durability, with particular scrutiny on its prospects should Venezuela hold new elections and an opposition government take power.
Elías Matta, former chair of the energy and petroleum commission in Venezuela's National Assembly, defended the deal. He argued that the constitution and the newly enacted legislation "allow private capital to enter the oil industry and permit private enterprise participation." He added: "The key is to get oil production moving again." One of the most contentious provisions in the agreement is the U.S. right to purchase 20% of the oil produced under the pact at cost price. Since such sales generate no profit margins, producers would owe no tax obligations in Venezuela on this output.
Capriles, the opposition faction leader and lawmaker, remarked: "Would Exxon, ConocoPhillips, or Chevron give up that 20% share? I doubt it." He deemed such a concession by Venezuelan companies as, "with all due respect, utterly foolish." He further stated: "The nation is simply forfeiting 20% of its oil resources."
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