The Pentagon received the right of first refusal to buy oil from 17 fields in Venezuela

The Pentagon has secured the right of first refusal to purchase oil from 17 fields in Venezuela, while the agency will be able to purchase 20% of the volumes at the cost of production, and not at the market price, as part of a new deal, Reuters reports, citing an American official.

"The Pentagon has a separate right of first refusal to purchase oil produced by NABEP. Twenty percent of the volume can be purchased at a price that reflects the company's cost of production rather than at market rates, while the remainder will be purchased at market prices," the publication said.

In addition to cheap oil, the Pentagon has secured a 35% stake in this joint venture, the agency writes.

The deal was formalized through a special right to repurchase shares at a symbolic price to protect the US share from reduction while the project attracts third-party billions, and will allow Washington to receive dividends from the very start, the material notes.

The United States and Venezuela previously announced a historic agreement that would see an influx of investment and increased oil production in the South American country. According to Venezuelan Presidential Commissioner Delcy Rodriguez, the alliance will significantly increase oil production with the participation of private operators. The agreement includes the development of 17 strategic fields with a proven potential of 65 billion barrels of oil, investments of more than $100 billion and over $200 billion in tax revenues to the Venezuelan budget.