US Firm to Take Over Venezuelan Oilfields Held by Chinese, Russian Companies
A US-backed firm will take over Venezuelan oilfields previously run by Chinese and Russian companies, officials say.
Washington, Aug 31: The US oil company North American Blue Energy Partners (NABEP) is set to take over several oilfields in Venezuela that were previously operated by five Chinese companies and one Russian firm, according to two US officials.
The move is part of a broader oil production agreement announced last week by President Donald Trump, under which the US secured access to approximately 64 billion barrels of Venezuela's proven oil reserves through a partnership with private business.
NABEP, formerly owned by US tycoon Harry Sargeant and now controlled by Venezuelan businessman Alejandro Betancourt, is expected to manage a total of 17 projects in Venezuela. Of these, 14 contracts are newly granted by the Venezuelan government, the officials said.
Five of the 14 contracts were previously operated by Chinese companies, including two by China Concord Resources, which was sanctioned by the US in 2019 for Iran-related activity. Other projects were run by Sinopec and China National Petroleum Corp. One contract was held by a Russian company.
Two additional projects were operated by affiliates of Alex Saab, a former close associate of ousted President Nicolas Maduro, who is currently in US custody. Another oilfield was linked to a nephew of Maduro's wife, Cilia Flores.
A US official said the arrangement opens new opportunities for US operators and establishes the United States as the market for oil that was previously sent to China.
The officials also noted that talks between Venezuela's interim authorities and representatives of the 2015 National Assembly aim to restore constitutional order and address legal questions around the country's transition. The Trump administration views the 2015 assembly as the last constitutionally elected legislative body in Venezuela, though it holds no formal governing power. An agreement with the assembly could provide a legal basis for economic decisions, including reviving Venezuela's oil industry.