Officials: US company to take over Venezuela oilfields that were previously operated by Chinese and Russian firms
Two U.S. officials said that the U.S. company North American Blue Energy Partners will be taking over oilfields controlled by several Chinese firms and a Russian firm.
They said that the takeover would be part of an?oil?production agreement President Donald Trump had announced with Venezuela.
According to officials, the projects were part of 14 new contracts awarded to U.S. backed North American Blue Energy Partners. NABEP, owned by U.S. oil magnate Harry Sargeant, is now controlled and managed by Venezuelan Alejandro Betancourt.
Betancourt, who confirmed the deal, said that Venezuela is blessed with a wealth of natural resources and hardworking people, as well as untapped potential. This transaction will unlock that potential for the benefit of Venezuelans as well as Americans.
NABEP will be in charge of running the business, while the U.S. government will hold a 35% stake and have "preferential" access to 20% of production costs.
The White House announced that NABEP had also granted the U.S. Department of State has the right of prior refusal to buy the remaining 80% of production.
Last week, Trump said that the U.S. has secured access to Venezuela's proven oil reserves of 64 billion barrels through a private partnership.
This arrangement allows U.S. firms to gain a foothold on some of Venezuela's strategic oil assets, while dislodging Chinese and Russian companies that have played a significant role in the?energy sector for many years. Washington will also have a role in determining the producers and sellers of Venezuelan oil. This is because the Trump administration wants to transform the oil industry and bring Venezuela's vast reserves closer to the United States. Economic and geopolitical interest.
White House: The U.S. also has veto powers over NABEP’s board of directors, and stipulated that at least a majority must be American citizens.
The NABEP will control 17 projects that it intends to develop in Venezuela and use for oil supply to the U.S., officials stated.
The officials stated that five of the fourteen fields were operated by Chinese firms under a model promoted at the time by Nicolas Maduro. One field was operated previously by a Russian firm.
China Concord Resources operated two of the projects, and was sanctioned in 2019 by the U.S. for Iran-related activities. The officials stated that Sinopec operated another project and China National Petroleum Corp. was responsible for the third.
The official stated that "not only do we open up new opportunities for the U.S. government and U.S. operators, but we also open up the United States market as a place to sell this oil which was previously sent to China."
Officials said that two other projects were run by Alex Saab's affiliates, who are currently in custody of the United States. Alex Saab is a former close friend of Nicolas Maduro, the ousted Venezuelan president, and a former associate of Maduro.
Officials said that another oilfield was connected to the nephew of Maduro’s wife Cilia Flores.
Trump said to reporters on Monday morning that the U.S. is taking "millions and millions of barrels" of oil that are currently being shipped, among others, to refineries in Texas Louisiana. On Tuesday, he will meet with oil and gas retailers as well as refineries.
Officials said that talks between Venezuela's interim authority and representatives of the National Assembly of 2015 are intended to?restore a measure constitutional order, as well as address legal questions surrounding?the country's transition.
The Trump administration sees the 2015 assembly, which was elected under Venezuela's constitution and is still in operation today, as the last Venezuelan legislative entity. However, it does not have any formal power.
An official stated that an agreement reached with the 2015 assembly would provide a legal and constitutional basis for a broader transition. This could include economic decisions, such as the revival the Venezuelan oil industry.
(source: Reuters)
