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US-backed deal pushes China and Russia out of Venezuelan oil fields
🇳🇴 Norway /Energy & Infrastructure

US-backed deal pushes China and Russia out of Venezuelan oil fields

From Aftenposten · () Norwegian

Translated from Norwegian and summarized by DistantNews. Read the original for the full story.

At a glance

Newswire Unnamed sources New plan
  • North American Blue Energy Partners is set to take control of 17 Venezuelan oil projects, including fields previously operated by Chinese and Russian companies.
  • The deal gives US authorities rights equivalent to a 35% stake, access to 20% of production at cost and influence over the remaining sales.
  • The agreement covers about 64 billion barrels of Venezuela’s proven reserves, while the country holds about 303 billion barrels, the world’s largest proven reserves.

A US-backed oil company is poised to replace Chinese and Russian operators across several Venezuelan oil fields under a broad agreement recently announced by President Donald Trump.

North American Blue Energy Partners, or NABEP, will control 17 projects. Venezuelan authorities will award the company 14 new contracts, including five fields previously run by Chinese companies and one operated by a Russian company.

We are not only opening new opportunities for US authorities and US operators. We are also opening the United States as a market for this oil, which previously went to China.

— US officialThe official described the agreement’s effect on US involvement and the destination of Venezuelan oil.

The arrangement gives Washington an unusually direct role in Venezuela’s oil industry. US authorities will receive rights equivalent to a 35% stake in NABEP and access to 20% of production at cost. The US State Department will also have first refusal on the remaining 80%, while Washington will hold veto power over the company’s board and management. Most board members must be US citizens.

The projects covered by the agreement represent about 64 billion barrels of Venezuela’s proven oil reserves. Venezuela has roughly 303 billion barrels in total, the largest proven reserves in the world. The deal therefore places more than one-fifth of those reserves within the scope of US control.

Venezuela is blessed with an abundance of natural resources, hardworking people and untapped potential. This agreement will unleash that potential to the great benefit of both Venezuelans and Americans.

— Alejandro BetancourtThe NABEP controller welcomed the agreement and its expected benefits.

Several outgoing operators have links to China, including China Concord Resources, Sinopec and China National Petroleum Corp. China Concord was sanctioned by the United States in 2019 over activity linked to Iran. One field was operated by a Russian company, while two others were connected to businesses tied to Alex Saab, a former associate of ousted Venezuelan President Nicolás Maduro who is in US custody. Another field was linked to a nephew of Maduro’s wife, Cilia Flores, according to Reuters sources.

NABEP is controlled by Venezuelan businessman Alejandro Betancourt and was previously owned by US oil billionaire Harry Sargeant. Betancourt said Venezuela’s natural resources and workforce represented untapped potential. A US official said the agreement would open the US market to oil that previously went to China. Trump has said the United States is already taking “millions and millions of barrels of oil” from Venezuela for refineries in Texas and Louisiana.

Millions and millions of barrels of oil

— Donald TrumpTrump described the volume of Venezuelan oil the United States was already taking for refineries in Texas and Louisiana.
About this summary

Originally published by Aftenposten in Norwegian. Translated, summarized, and contextualized automatically by DistantNews, with a note on how the source frames the story. Not individually reviewed before publishing. How this works.

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