The US-backed oil firm North American Blue Energy Partners (NABEP) is taking over 17 Venezuelan petroleum projects formerly run by Chinese and Russian operators, according to two US officials speaking to Reuters. The sweeping takeover stems from an energy pact announced by President Donald Trump, placing roughly one-fifth of Venezuela’s total proven oil reserves under direct American control.
US Secures Majority Stake and Board Control in NABEP
Under the terms of the agreement, NABEP will hold operational control of the 17 projects, with 14 awarded as new contracts by Venezuelan authorities, according to Reuters reporting. The US government secures rights equivalent to a 35 percent ownership stake in the company, alongside 20 percent of production at cost price. Additionally, the White House confirmed that the US State Department holds a right of first refusal on the remaining 80 percent of output.
Washington maintains veto power over the company’s board and executive leadership, requiring a majority of board members to be US citizens. “We are not just opening up new opportunities for US authorities and US operators,” an unnamed US official told Reuters regarding the deal. “We are also opening up the US market for this oil, which was previously sent to China.” Trump noted that the US is already extracting millions of barrels of oil from Venezuela for delivery to refineries in Texas and Louisiana.
Chinese and Russian Operators Ousted From Venezuelan Fields
The shift strips several foreign firms of their operational assets. Five fields previously run by Chinese companies and one operated by a Russian firm are affected by the transition, as reported by Reuters. Among the impacted ventures are two projects formerly managed by China Concord Resources, a firm hit with US sanctions in 2019 over Iran-linked activities. Additional fields previously operated by Sinopec, China National Petroleum Corp, and unnamed Russian interests are shifting to NABEP.
The restructuring also touches assets tied to figures from the administration of ousted President Nicolás Maduro. Two projects previously managed by companies connected to Alex Saab—who is currently in US custody—and a field linked to a nephew of Maduro’s wife, Cilia Flores, are included in the shift, according to Reuters sources. NABEP is controlled by Venezuelan businessman Alejandro Betancourt and was previously owned by American oil billionaire Harry Sargeant.
Did you know? Venezuela holds vast amounts of proven oil reserves, giving the country the largest reserve base in the world. The new agreement grants the United States direct access to a portion of those reserves.
Frequently Asked Questions
Which company is taking over the Venezuelan oil fields?
The US-backed firm North American Blue Energy Partners (NABEP) is taking over 17 projects, according to Reuters.
How much of Venezuela’s reserves does the deal cover?
The agreement gives the US access to roughly one-fifth of Venezuela’s proven oil reserves.
What level of control does the US government have over NABEP?
Washington holds rights equivalent to a 35 percent stake, vetopower over the board and management, and a requirement that a majority of board members be US citizens, according to the White House.
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