Officials say that some Chinese and Russian oil companies lose out under the US-Venezuela deal

Two U.S. officials have confirmed that the U.S. company North American Blue Energy Partners is taking over some oilfields controlled by five Chinese firms and a Russian firm. ?on Monday.

They said that the takeover would be part of an oil production agreement between President Donald Trump and 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 by Venezuelan Alejandro Betancourt.

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

The agreement gives U.S. firms a 'foothold' in 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 will also have a say in who sells and produces Venezuelan oil. The Trump administration is trying to reshape Venezuela's energy industry to bring its vast oil reserves closer to U.S. economic and geopolitical interest.

NABEP will control 17 projects in Venezuela, which it intends to develop.

Officials said that five of the 14 contracts were 'operated' by Chinese companies using a model promoted by the then-President Nicolas Maduro. One contract was operated previously by a Russian firm.

(source: Reuters)