US oil company North American Blue Energy Partners (NABEP) will take over several Venezuelan oilfields previously run by Chinese and Russian firms as the two US officials told Reuters on Monday. The deal is part of a broader oil production agreement between President Donald Trump and Venezuela.
NABEP, once owned by US oil tycoon Harry Sargeant is now controlled by Venezuelan businessman Alejandro Betancourt. It will receive 14 newly granted contracts, part of 17 total projects the company plans to develop. NABEP will retain operating control while the US government will hold a 35% stake and get preferential access to 20% of production at cost. The US Department of State also has first refusal rights to buy the remaining output.
Last week, Trump announced the US had secured access to 64 billion barrels of Venezuela's proven oil reserves through this private partnership. The deal shifts control away from Chinese and Russian interests that previously dominated Venezuela's energy sector also giving Washington greater influence over the country's oil production.
Of the 14 newly granted fields, five were previously run by Chinese companies including China Concord Resources, Sinopec and China National Petroleum Corp while one was operated by a Russian firm. Two other projects were linked to associates of Alex Saab, a former ally of ousted President Nicolas Maduro and one to a relative of Maduro's wife Cilia Flores.
Trump said the US was extracting "millions and millions of barrels" of oil is now being shipped to refineries in Texas and Louisiana.
Officials added that talks are ongoing between Venezuela's interim authorities and the 2015 National Assembly also aimed at restoring constitutional order and supporting the broader transition including oil sector reforms.
