Venezuela: Trump gets his hands on oil fields previously managed by China and Russia
Following the White House’s announcements, the US company Nabep has secured 17 oil projects in the South American country
The US oil company North American Blue Energy Partners is set to take control of several oil fields in Venezuela previously controlled by Chinese and Russian companies. Two US officials told Reuters that the move forms part of a wider agreement on oil production in Venezuela announced by President Donald Trump in recent days.
At least 14 contracts have been awarded to North American Blue Energy Partners (Nabep), a company formerly owned by the US oil magnate Harry Sargeant and now controlled by the Venezuelan entrepreneur Alejandro Betancourt. “Venezuela is blessed with an abundance of natural resources, a hard-working population and untapped potential,” Betancourt said in a statement, confirming the deal that excludes China and Russia. “This transaction,” he added, “will unlock that potential, to the great benefit of both Venezuelans and Americans.”
Nabep has announced that the company will have operational control of the business and that the US government will hold a 35 per cent stake in the company, as well as ‘preferential access’ to 20 per cent of production at cost price. The White House has stated that Nabep has also granted the US State Department a right of first refusal to purchase the remaining 80 per cent of production.
Last week, Trump announced that the United States had secured access to around 64 billion barrels of Venezuela’s proven oil reserves through partnerships with private companies. The deal – effectively a sell-off of Venezuela’s assets, which has drawn criticism both at home and abroad – grants US companies access to some of the South American country’s most strategically important oil resources, sidelining China and Russia, which have long played a leading role in Venezuela’s energy sector.
It is now up to Washington to decide, in accordance with its own interests, who produces and sells Venezuelan oil. In the case of Nabep, the US has reserved the right to veto the composition of a board of directors, which must have a majority of US citizens.
