US-Backed Firm to Take Over Venezuela Oilfields Previously Run by Chinese, Russian Operators
WASHINGTON, UNITED STATES — WEB DESK: US-backed oil company North American Blue Energy Partners (NABEP) is set to take operating control of several Venezuelan oilfields previously run by Chinese companies and a Russian firm, marking a significant shift in foreign influence over one of the world’s largest petroleum resource bases.
Two US officials told Reuters that the transfers form part of the sweeping oil production agreement recently announced by President Donald Trump and Venezuela. The arrangement will give NABEP control over a total of 17 Venezuelan oil projects, including 14 contracts newly awarded by the Venezuelan government.
Of those 14 newly awarded fields, five had been operated by Chinese companies and one by a Russian company, according to the officials.
The move represents more than a conventional commercial transaction. The agreement gives Washington direct financial, governance and supply rights in NABEP while redirecting part of Venezuela’s oil production toward the United States.
US Government to Hold 35% Stake
Under the arrangement disclosed by NABEP and the White House, the US government will have rights to a 35% stake in NABEP, while the company will retain operating control of the Venezuelan projects.
Washington will also receive preferential access to 20% of NABEP’s production at cost.
The US State Department has been granted a right of first refusal on the remaining 80% of production, meaning Washington would have the first opportunity to purchase that output under the terms of the arrangement.
The US government will additionally hold veto power over NABEP’s board and directors, while a majority of the company’s board must be American citizens, the White House said.
These provisions give the US government an unusually direct role in the corporate governance and disposition of oil produced through the projects.
Chinese and Russian Operators Lose Fields
The geopolitical significance of the agreement is particularly evident in the identity of some previous operators.
Two projects had been operated by China Concord Resources, while another had been operated by Chinese energy giant Sinopec and another by China National Petroleum Corp, according to the US officials.
China Concord Resources was sanctioned by the United States in 2019 over Iran-related activity.
One of the 14 newly awarded projects had previously been operated by a Russian company, although the Reuters report did not publicly identify that operator.
Two additional projects were operated by affiliates of Alex Saab, described by Reuters as a former close associate of ousted Venezuelan President Nicolás Maduro, while another field was linked to a relative of Maduro’s wife, Cilia Flores.
The transfer therefore shifts operating control of selected Venezuelan petroleum assets away from interests associated with China, Russia and the former Maduro government toward a US-backed company.
Who Controls NABEP?
NABEP was previously owned by American oil businessman Harry Sargeant but is now controlled by Venezuelan businessman Alejandro Betancourt, according to Reuters.
Betancourt confirmed the transaction in a statement and said Venezuela’s natural resources represented substantial untapped potential that could benefit both Venezuelans and Americans.
The company’s designation as “US-backed” is therefore more precise than describing it simply as a wholly US-controlled private company.
NABEP has US corporate links and will operate under an arrangement that gives the US government a substantial stake and governance rights, but its current controlling businessman is Venezuelan.
Oil Previously Sent to China Could Shift to US
A senior US official said one objective of the arrangement is to redirect Venezuelan crude that had previously been sold to China toward the American market.
Trump said Monday that “millions and millions of barrels” of Venezuelan oil were already being shipped to refineries in Texas and Louisiana, among other destinations.
Reuters separately reported that international energy companies including Chevron, India’s ONGC, Italy’s Eni, Colombia’s GeoPark and GE Vernova are advancing agreements connected to the broader revival of Venezuela’s energy sector.
Those projects are distinct from the NABEP arrangement but illustrate the scale of the restructuring now under way in Venezuela’s petroleum industry.
Trump Deal Covers 17 Oilfields
The broader US-Venezuela arrangement encompasses 17 strategic oilfields containing about 64 billion barrels of proven reserves, according to the announced framework.
That number requires an important qualification.
The 64 billion barrels represent proven petroleum reserves underground associated with the fields covered by the arrangement. They are not 64 billion barrels already produced, physically transferred to the United States or deposited into the US Strategic Petroleum Reserve.
The agreement aims eventually to lift production from the covered projects to as much as 1.5 million barrels per day, Reuters reported.
Venezuela possesses the world’s largest proven crude oil reserves overall, but years of underinvestment, infrastructure deterioration, political instability and sanctions have constrained its production capacity.
Venezuela Says Agreement Will Last 25 Years
Venezuela’s interim President Delcy Rodríguez said the wider energy agreement with Washington will run for 25 years and is intended to revive the country’s oil industry while increasing government revenue.
According to Reuters, the bilateral framework covers the development of the 17 strategic oilfields and could later expand to additional undeveloped blocks.
Venezuelan authorities maintain that the country retains sovereignty over its natural resources despite the extensive production and purchasing rights granted under the agreement.
That distinction is important when describing the arrangement: the United States is acquiring significant economic, operational and purchasing rights, but the reporting does not establish that Venezuela has legally transferred national ownership of its underground oil reserves to Washington.
Legal Questions Remain
The restructuring is also unfolding amid unresolved questions about Venezuela’s political and constitutional framework.
US officials told Reuters that discussions are taking place between Venezuela’s interim authorities and representatives of the country’s 2015 National Assembly in an effort to establish a stronger constitutional basis for the broader political transition and major economic decisions.
The Trump administration regards the 2015 assembly as the last Venezuelan legislature elected and operating under the country’s constitution, although Reuters notes that it currently has no formal governing power.
Reuters’ examination of the wider oil deal has also identified legal questions surrounding legislative oversight and the method used to select private partners.
Those issues mean the long-term legal structure of some of the new arrangements remains an important part of the story.
A Major Shift in Venezuela’s Oil Partnerships
For years, Chinese and Russian companies played important roles in Venezuela’s energy industry, particularly as Caracas became increasingly isolated from Western capital and markets.
The latest agreements point toward a substantial reorientation.
The United States will have a 35% stake in NABEP, governance rights, access to oil at cost and first-refusal purchasing rights, while selected fields previously associated with Chinese and Russian operators will shift to the US-backed company.
But the development should not be overstated as a complete expulsion of China or Russia from Venezuela’s energy sector.
The confirmed change concerns specific projects among the 14 newly granted contracts, including five previously operated by Chinese companies and one previously operated by a Russian company. It does not establish that every Chinese or Russian petroleum interest in Venezuela has been removed.
The central development is nevertheless significant: Washington is gaining an unusually direct role in Venezuelan oil production and sales while a US-backed company takes over selected fields formerly operated by Chinese and Russian interests.
