U.S. President Donald described the agreement to develop 17 Venezuelan oil fields as the largest deal in history, but a Reuters investigation revealed serious logistical, financial, and reputational obstacles for operator NABEP.

Experts note that actual production volumes during the allotted period will be significantly lower than claimed due to aging infrastructure and funding problems.

The main reasons why NABEP’s mega-deal in Venezuela is at risk of falling through:

• Strict time limit. Venezuelan law limits leases to 25 years. It is physically impossible to extract the stated 65 billion barrels in that time — at most 10 billion.

• Financial roadblock. Because of past legal investigations in the U.S. and Europe, banks refuse to open accounts for NABEP, blocking its ability to raise capital.

• Heavy crude. The oil in the Orinoco Belt is extra-heavy. Extracting and diluting it requires sophisticated technology that the company does not have.

• Crumbling infrastructure. The oil fields are cut off from ports, while existing pipelines and refineries have been devastated by years of underinvestment.

• White House pressure. Washington expects the deal to deliver cheap oil, effectively depriving the project of commercial benefits and margins from the outset.

NABEP’s high-profile Venezuelan oil deal risks remaining just a paper agreement. The company will be unable to carry out the project because of strict legal deadlines, banking isolation, crumbling infrastructure, and the technological complexity of extracting heavy oil.$BNB $ETH