Opinion | Aramco To Venezuela: The Oil Concession Comes Full Circle

Updated: Oct 23, 2026 16:37 pm IST Published On Oct 23, 2026 16:37 pm IST Last Updated On Oct 23, 2026 16:37 pm IST

Published On Oct 23, 2026 16:37 pm IST

Last Updated On Oct 23, 2026 16:37 pm IST

More than a century ago, William Knox D'Arcy made a bargain with the Shah of Persia that helped create the modern oil industry. The deal gave D'Arcy exclusive rights to explore for, produce and sell oil across most of Persia for 60 years. In return, the Persian government received £20,000 in cash, £20,000 in shares and 16% of annual net profits.

At the time, nobody knew how valuable the oil would become.

That uncertainty was central to the early oil concession. Foreign companies supplied capital, technology and the willingness to take exploration risk. Governments possessing the resource supplied access. As the value of oil became clearer, however, that bargain was repeatedly renegotiated.

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A century later, a new Venezuelan oil agreement raises the possibility that the concessionary model is entering another phase.

The North American Blue Energy Partners arrangement is striking not simply because of its scale, but because of the unusual roles assigned to the company and the U.S. government.

The agreement covers 17 Venezuelan oil fields and gives NABEP 100-year rights over fields associated with approximately 65 billion barrels of proven reserves. The company plans to invest close to $100 billion and raise production substantially.

But the unusual feature is the role assigned to the United States.

The Pentagon's Office of Strategic........

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