Venezuela oil deal: US firm to take over fields previously operated by Chinese, Russian companies

US oil company North American Blue Energy Partners (NABEP) is set to take control of several Venezuelan oilfields that were previously operated by Chinese companies and a Russian firm, according to two US officials cited by Reuters.

The move is expected to form part of a wider agreement on oil production between the United States and Venezuela that President Donald Trump announced last week.

14 new projects awarded to NABEP

The officials said NABEP has received 14 newly-granted contracts from the Venezuelan government. The company is expected to oversee 17 projects in total, with plans to develop the fields and eventually supply their output to the United States.

NABEP was earlier owned by US oil businessman Harry Sargeant and is now controlled by Venezuelan businessman Alejandro Betancourt.

Of the 14 newly-granted projects, five were previously operated by Chinese companies under a model promoted by former Venezuelan President Nicolas Maduro. One was earlier run by a Russian company.

Among the Chinese-linked projects, two were operated by China Concord Resources, which was sanctioned by the US in 2019 over Iran-related activity. Another field was operated by Sinopec, while another was linked to China National Petroleum Corp, the officials said.

Oil to be directed towards US market

The arrangement would give US companies a larger presence in some of Venezuela's key oil assets, while reducing the role previously held by Chinese and Russian interests.

The officials said the projects are intended to help redirect Venezuelan oil towards the US market, rather than China.

"Not only are we opening up new opportunities for the US government to benefit and for US operators to benefit, we are opening up the United States as the market for this oil which was previously being sent to China," the official said.

Trump said on Monday that the US was taking out "millions and millions of barrels of oil" that is currently being shipped to refineries in Texas and Louisiana, among other locations. He is scheduled to meet oil and gas retailers and refinery representatives on Tuesday.

Legal questions around Venezuela transition

The oil arrangement comes as talks continue between Venezuela's interim authorities and representatives of the 2015 National Assembly.

According to the officials, the discussions are focused on restoring some constitutional order and resolving legal questions linked to Venezuela's political transition.

The Trump administration considers the 2015 assembly to be the last Venezuelan legislative body elected and operating under the country's constitution, although it does not have formal governing authority.

One US official said an agreement with the assembly could provide a constitutional and legal foundation for the wider transition, including economic measures aimed at restarting Venezuela's oil industry.