Officials say that US oil company will take over Venezuelan oilfields that were previously operated by Chinese and Russian firms

Two U.S. officials have confirmed that North American Blue Energy Partners, a U.S.-based oil company, will take over some oilfields controlled by five 'Chinese' companies and one Russian firm. On Monday, two U.S. officials?told?that North American Blue Energy Partners will take?over some oilfields previously controlled by five chinese companies 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.

Last week, Trump said that the U.S. has secured access to?64 billion of Venezuela's proven reserves of oil through a private partnership.

The agreement gives U.S. firms a foothold on some of Venezuela's strategically significant oil assets, while dislodging Chinese and Russian companies that have played a major part in the energy sector for many years. Washington also has a direct say in who produces and sells Venezuelan oil. This is because the Trump administration wants to reshape Venezuela's energy industry and bring the vast reserves of oil closer to U.S. geopolitical and economic interests.

NABEP will control 17 projects in Venezuela, which it intends to "develop" and then use to "supply oil to America". Fourteen of these projects are expected to be granted newly by the Venezuelan Government.

The officials stated that five of the fourteen contracts were operated by Chinese firms under a model promoted at the time by Nicolas Maduro. One contract 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 declined to name the fifth Chinese company. Another project was operated Sinopec, and another by China National Petroleum Corp.

The official said: "Not only do we open up new opportunities for U.S. Government to benefit but also for U.S. Operators to benefit. We are opening the United States up as a market for this oil that 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, ousted Venezuelan president, and is now being held there.

Officials said that another oilfield had been linked to the nephew of Maduro’s wife Cilia Flores.

Officials said that talks between Venezuelan interim authorities and the representatives of the National Assembly of 2015 are intended to restore a degree of constitutional order, and address legal questions surrounding Venezuela's "transition".

The Trump administration sees the 2015 assembly as the last Venezuelan legislative group elected and operating under the country's Constitution, even though it has no formal power.

An official stated that an agreement reached with the 2015 assembly would provide a legal and constitutional basis for the wider transition, which could include economic decisions like the revival of Venezuela’s oil industry.

(source: Reuters)