U.S. to take over Venezuelan oilfields previously run by Chinese, Russian firms
U.S. oil company North American Blue Energy Partners (NABEP) will take over some oilfields in Venezuela previously controlled by several Chinese companies and a Russian firm, Reuters reported on August 31, citing two U.S. officials.
The United States is set to take over Venezuelan oilfields previously operated by Chinese and Russian firms, according to a report by Reuters on August 31. This move is part of a broader oil production agreement announced by U.S. President Donald Trump with Venezuela. North American Blue Energy Partners (NABEP), a U.S. oil company, will assume operating control of the business and the U.S. government will hold a 35% stake in the company.
The White House has granted the U.S. Department of State the right of first refusal to purchase the remaining 80% of the company's production at cost. The deal allows the U.S. to secure access to some 64 billion barrels of Venezuela's proven oil reserves, which were announced last week. The arrangement aims to displace the long-standing influence of Chinese and Russian interests in Venezuela's energy sector, as well as give the U.S. direct control over the production and sale of Venezuela's oil.
NABEP is expected to control 17 projects in Venezuela, with 14 of them newly granted by the Venezuelan government. Five of the 14 fields were previously operated by Chinese companies, and one was operated by a Russian firm. The U.S. has also secured veto power over NABEP's board and directors, with a majority of the board required to be American citizens.
U.S. President Trump announced the deal as the "biggest oil deal in world history," stating that it will more than double U.S. oil reserves and lower gasoline prices for Americans.
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