- President Donald Trump announced a sweeping oil production agreement with Venezuela, under which U.S. oil company North American Blue Energy Partners (NABEP) will take over some oilfields previously controlled by several Chinese companies and a Russian firm.
- NABEP will have operating control, while the U.S. government will hold rights to a 35% stake and preferential access to 20% of production at cost; the White House also said NABEP granted the State Department a right of first refusal to purchase the remaining 80% of production.
- The U.S. will have veto power over NABEP’s board and directors, and a majority of the board must be American citizens.
- NABEP is expected to control 17 projects in Venezuela, with 14 newly granted by the Venezuelan government; of those 14, five were operated by Chinese companies and one by a Russian company.
- Among the Chinese-operated projects, two were run by China Concord Resources (sanctioned by the U.S. in 2019 for Iran-related activity), one by Sinopec, and one by China National Petroleum Corp.
- Two other projects were operated by affiliates of Alex Saab, a former close associate of ousted President Nicolas Maduro currently in U.S. custody, and another oilfield was linked to a nephew of Maduro’s wife, Cilia Flores.
- The arrangement gives U.S. companies a foothold in strategically important Venezuelan oil assets while displacing Chinese and Russian interests, and an official said the U.S. becomes the market for oil previously sent to China.
President Donald Trump has announced a significant oil production agreement with Venezuela, enabling North American Blue Energy Partners (NABEP) to take control of oilfields previously managed by Chinese and Russian firms. This deal is expected to reshape the energy landscape in Venezuela and enhance U.S. access to its oil resources.12
NABEP, now controlled by Venezuelan businessman Alejandro Betancourt, will oversee 17 projects in Venezuela, with 14 newly granted by the Venezuelan government. The U.S. government will hold a 35% stake in NABEP and have preferential access to 20% of its production at cost. Additionally, the U.S. will have veto power over NABEP's board, which must consist of a majority of American citizens.345678
Betancourt stated, “Venezuela is blessed with an abundance of natural resources, hardworking people and untapped potential. This transaction will unleash that potential to the great benefit of both Venezuelans and Americans.” The arrangement displaces Chinese and Russian interests that have dominated Venezuela's energy sector, with U.S. officials noting, “Not only are we opening up new opportunities for the U.S. government to benefit and for U.S. operators to benefit, we are opening up the United States as the market for this oil which was previously being sent to China.”
“The deal gives the U.S. government a 35% stake in NABEP and preferential access to 20% of production at cost, with veto power over the board. NABEP will control 17 projects, including five previously operated by Chinese firms and one by a Russian company, displacing those interests.”
The Globe and Mail
