Caracas (OrinocoTribune.com)—Petróleos de Venezuela (PDVSA) President Héctor Obregón has provided the most detailed official explanation to date of how Venezuela expects to obtain revenue from its controversial oil agreement with the United States. He estimates that approximately $19 from every barrel sold would accrue to the Venezuelan state based on a variable reference price of $65.During an interview with journalist Shirley Varnagy on Circuito Onda, Obregón explained that the amount would combine Venezuela’s direct participation in 17 oil fields with royalties, taxes, and other payments collected from North American Blue Energy Partners (NABEP), the private company chosen to operate the projects.The official also clarified that the contract signed by Venezuela has an initial term of 25 years—not the 100 years repeatedly stated by US President Donald Trump—although it may be renewed for similar periods by mutual agreement.How Venezuela’s income would be calculatedUsing a hypothetical international price of $65 per barrel, Obregón said commercialization and market-related discounts could reduce the working value to approximately $45. Operating and capital costs, estimated at $12 to $15 per barrel, would then leave around $35 to be divided between the participating parties.The distribution would vary from one field to another. Mature—or brownfield—projects could produce a relatively equal division, while investors would receive a larger share in undeveloped greenfields because they must assume higher initial costs and risks.According to Obregón, Venezuela’s average net revenue would be approximately $19 per barrel when PDVSA’s contractual participation, royalties, taxes, and fees are combined. Acting President Delcy Rodríguez previously projected that these mechanisms could generate approximately $209.34 billion for Venezuela during the initial 25-year term, based on the same $65 reference price.Obregón added that the agreement anticipates around $100 billion in investment to develop infrastructure in eight greenfields and nine mature fields containing an estimated 65 billion barrels of Venezuelan proven oil reserves.The PDVSA president maintained that the arrangement is not a concession because Venezuela has not relinquished ownership or completely transferred production activities to a foreign operator. “The reserves remain ours,” he stressed, arguing that PDVSA retains a share in every field and collects royalties and income tax from NABEP’s portion.Treasury accounts and US controlObregón said PDVSA would administer the resources and issue payment instructions for suppliers and the Venezuelan state, although some money would be deposited in US Treasury accounts under a state-to-state arrangement.He claimed that the mechanism could serve as protection against attempts by creditors to seize PDVSA funds amid numerous international lawsuits. However, US Energy Secretary Chris Wright has separately claimed that Washington will exercise “very strict control” over the flow of money.These differing descriptions have intensified questions surrounding one of the agreement’s most contentious aspects, particularly after years of illegal US sanctions, asset seizures, and financial restrictions against Venezuela. Obregón acknowledged that portions of the contracts would remain confidential.The agreement is considered tripartite because NABEP signed the Venezuelan contract while the US government acquired rights to a 35% stake in the company. Washington also secured access to 20% of NABEP’s production at cost and preferential purchasing rights over the remainder.Twenty-five years, with possible renewalsObregón explained that Trump’s reference to a century-long arrangement should not be confused with the duration of Venezuela’s contract.“The contract is signed for 25 years,” he said, adding that the parties could agree to successive renewals for similar periods. He expressed hope that oil would remain an important energy source for Venezuela over the next century but did not describe the existing contract as an immediate 100-year award.The clarification comes amid criticism over Washington’s presentation of the agreement as securing long-term US access to one-fifth of Venezuela’s crude reserves.Concerns have also centered the absence of a competitive bidding process, preferential conditions granted to Washington, and the confidentiality surrounding key contractual provisions. Obregón responded that Venezuelan legislation permits alternatives to public bidding and argued that the country’s economic circumstances did not allow for the delays normally associated with a lengthy competitive process.He explained that, under the mechanism employed, the Ministry of Hydrocarbons evaluates each company’s technical suitability and verifies whether it possesses the necessary equipment. Meanwhile, state investment authorities examine the legitimacy of the company and its shareholders, its proof of funds, and its financial capacity to develop the assigned fields. According to Obregón, NABEP’s selection was also supported by its previous performance at the PetroZamora field, where he said production increased from approximately 20,000–25,000 barrels per day to nearly 100,000 within 12 months.The agreement was finalized months after the January 3 US bombing of Venezuela and kidnapping of President Nicolás Maduro, following years of US imperialist economic warfare and a naval blockade. Obregón argued that what had changed was the bilateral relationship, claiming that agreements respecting Venezuelan law could now be reached through diplomacy instead of force.China and Russia agreements to continueSeparately, Venezuelan Oil Minister Paula Henao clarified in a public television interview that the new relationship with Washington would not terminate pre-existing agreements with China and Russia.Henao said Venezuela would remain “very respectful” of the authorizations held by Chinese and Russian partners in existing joint ventures and confirmed that those companies would continue their operations. Her statement is particularly significant following demands from Beijing that its legitimate interests in Venezuela be protected from third-party interference and US imperialist claims about full control of Venezuelan oil.Obregón, meanwhile, said Venezuela was preparing additional agreements with companies from other countries. He cited existing or recently expanded projects involving Chevron, Spain’s Repsol, Italy’s Eni, and Colombia’s GeoPark, adding that further contracts would be signed in the coming months.PDVSA expects national production—currently averaging approximately 1.23 million barrels per day—to surpass 1.5 million barrels per day in 2027, with the new investment potentially pushing output even higher.Obregón defends BetancourtObregón also defended NABEP head Alejandro Betancourt, whose involvement has attracted scrutiny due to past investigations in Venezuela, the United States, Spain, and Switzerland over alleged money laundering and the diversion of PDVSA funds.The PDVSA president argued that an accusation does not establish guilt and said Betancourt had obtained a dismissal in Venezuela because authorities found insufficient evidence to hold him criminally responsible.The US-Venezuela Oil Deal: Beyond the AnnouncementHe further defended NABEP’s operational record, claiming that the company increased production at the PetroZamora field from roughly 20,000–25,000 barrels per day to nearly 100,000 within 12 months.Obregón did not address the foreign investigations individually. Reuters has reported that Betancourt was never indicted, that a US investigation was paused, and that inquiries in Spain and Switzerland remain open. Special for Orinoco Tribune by staffOT/JRE/SF