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US officials defend Venezuela oil deal amid questions over rebuilding plan

From The Guardian · () English

Summarized by DistantNews. Read the original for the full story.

At a glance

News Official statement New plan
  • US officials defended an agreement giving a US-backed company 100-year rights over 17 Venezuelan oil fields and majority control of about 65 billion barrels of reserves.
  • They said increased production could generate revenue for an interim government and eventually an elected Venezuelan government.
  • Venezuelan opposition figures have condemned the pact, which follows the removal of Nicolás Maduro and comes as Washington seeks access to strategic crude supplies.

The Trump administration is presenting a sweeping Venezuelan oil agreement as the financial foundation for rebuilding democracy, even as Venezuela’s opposition condemns the pact and says democratic rule has yet to return.

Donald Trump announced the “groundbreaking” deal last week, saying it would give the United States “majority” control over 65 billion barrels of Venezuelan oil, roughly one-fifth of the country’s reserves. A White House factsheet said the US-backed North American Blue Energy Partners, or Nabep, received 100-year rights over 17 oil fields in what it called “the biggest oil deal in world history.”

They are inheriting a government that is generating revenue that can be used to rebuild that country.

— Unnamed US officialThe official argued that oil revenue could help rebuild Venezuela under an interim government and eventually an elected administration.

US officials said Nabep’s takeover of fields previously controlled by Chinese and Russian companies would bring in capital and allow production to increase quickly. The resulting royalties would support the interim government and later the country’s democratically elected government, they said. “They are inheriting a government that is generating revenue that can be used to rebuild that country,” one official told journalists on a conference call.

We can hand over a more stable Venezuela.

— Unnamed US officialThe official described the administration’s stated aim for the oil agreement.

The official acknowledged that rebuilding would take time after more than two decades of corruption, kleptocracy and a lack of democracy and freedom under Hugo Chávez and Nicolás Maduro. “We can hand over a more stable Venezuela,” the official said, while warning that any elected government would still face major challenges.

The agreement emerged after months of secret talks and has intensified anger among opposition groups, who were already frustrated that democracy had not returned eight months after Maduro’s removal by US special forces. Energy Secretary Chris Wright was due to travel to Caracas to follow up on the pact, which Trump has described as a historic transaction linked to US strategic oil reserves.

That’s going to take time. You don’t reverse 20 years of corruption, 20 years of kleptocracy, 20 years of no democracy, no freedom.

— Unnamed US officialThe official said rebuilding Venezuela would be difficult after years of Chavista and Maduro rule.
About this summary

Originally published by The Guardian. 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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