Trump Ousts China and Russia as US Gains Control of Strategic Oil Fields
The United States has expanded its control over Venezuela’s oil industry by taking over several oil fields previously managed by companies from China and Russia. This move is part of an oil production agreement announced by US President Donald Trump.
Two US officials told Reuters on Monday that the takeover will be carried out by North American Blue Energy Partners (NABEP) and includes several projects that were previously under the control of Chinese companies and one Russian company.
NABEP has secured 14 new contracts from the Venezuelan government as part of the arrangement. The company was previously owned by US oil tycoon Harry Sargeant and is now controlled by Venezuelan businessman Alejandro Betancourt.
“Venezuela is blessed with an abundance of natural resources, hardworking people, and untapped potential,” Betancourt said in a statement, as quoted by Reuters on Tuesday.
“This transaction will unlock that potential for great benefit to both the Venezuelan and American people.”
Under the new structure, NABEP will hold operational control, while the US government will obtain a 35% ownership stake in the company, along with “preferential access” to up to 20% of production at cost. The White House also stated that the US Department of State holds a right of first refusal to purchase the remaining 80% of NABEP’s production.
Trump previously stated that the US has secured access to approximately 64 billion barrels of Venezuelan oil reserves through partnerships with private companies. This arrangement simultaneously strengthens the position of US companies in Venezuela’s strategic oil assets and shifts the interests of China and Russia, which have played significant roles in the country’s energy sector for many years.
Overall, NABEP is expected to control 17 oil projects in Venezuela, which will be developed to supply the US market. Of the 14 projects granted by the Venezuelan government, five were previously operated by Chinese companies, including Concord Resources, Sinopec, and China National Petroleum Corp, while another was managed by a Russian company.
“We are not only opening new opportunities for the United States government and US operators to profit, but we are opening the United States to this oil market that was previously sent to China,” said a US official.
Trump also stated that the US is now taking “millions and millions of barrels of oil” to be sent to refineries in Texas and Louisiana, reinforcing Washington’s efforts to redirect the flow of Venezuelan oil towards US markets.