Bank of America said a reported U.S. move to control Venezuela's 65 billion barrels of oil reserves marks a major policy shift, while warning that its consequences for the country's defaulted debt remain uncertain. Reports cited by the bank describe a 25-year arrangement covering 17 oil fields, with the U.S. taking a stake through a partnership between the Department of Defense (U.S. military department) and Alejandro Betancourt's NABEP. The proposal is expected to attract $100 billion in investment and provide the U.S. with 55% effective output from a new private company, whose production could exceed 1.5 million barrels per day. BofA kept its production target at 1.6 million barrels per day but delayed the timetable from the end of 2027 to sometime in 2028, saying markets need time to assess the new structure. The bank said the arrangement could raise output in an area where major oil companies have hesitated, but its fiscal benefit for Caracas and production model remain untested. It also warned that legacy creditors (holders of older debt claims) could face downside if Washington prioritizes reconstruction, while Venezuela's heavy Orinoco crude (heavy oil that is costly to extract) remains technically difficult and expensive to produce and often sells at a steep discount.