Venezuela Hands U.S. Control Over One-Fifth of Its Oil Reserves
World
Venezuela’s National Assembly has approved a deal expanding U.S. control over assets linked to roughly one-fifth of the country’s oil reserves. The agreement gives Washington preferential access to 17 oil fields and strengthens U.S. influence over the management of Venezuelan oil assets.
Under the deal, North American Blue Energy Partners (NABEP), led by Venezuelan businessman Alejandro Betancourt, will give the U.S. government the right to purchase 20% of its oil output at cost. The U.S. government will also hold a 35% stake in the company, while U.S. citizens are required to make up a majority of its board of directors. Washington will have veto power over board appointments.
The agreement will give the U.S. access to assets previously operated by Russian and Chinese companies. U.S. Secretary of State Marco Rubio said the deal would help increase oil production and attract private investment needed to expand Venezuela’s production capacity.
The White House has also linked the agreement to efforts to lower gasoline prices in the United States and counter Russian and Chinese influence in the region. U.S. President Donald Trump said after meeting oil company executives that his administration was seeking to expand the use of America’s energy strength.
The agreement has been backed in Venezuela by National Assembly President Jorge Rodriguez and Defense Minister Gustavo Gonzalez Lopez. Some opposition lawmakers, however, abstained from the vote, saying they first needed to review the deal’s detailed terms.
The agreement is scheduled to be signed on Wednesday. U.S. Energy Secretary Chris Wright arrived in Venezuela on Tuesday. Chevron is also expected to announce a major expansion of its operations in the country the same day.
The agreement will give the U.S. access to assets previously operated by Russian and Chinese companies. U.S. Secretary of State Marco Rubio said the deal would help increase oil production and attract private investment needed to expand Venezuela’s production capacity.
The White House has also linked the agreement to efforts to lower gasoline prices in the United States and counter Russian and Chinese influence in the region. U.S. President Donald Trump said after meeting oil company executives that his administration was seeking to expand the use of America’s energy strength.
The agreement has been backed in Venezuela by National Assembly President Jorge Rodriguez and Defense Minister Gustavo Gonzalez Lopez. Some opposition lawmakers, however, abstained from the vote, saying they first needed to review the deal’s detailed terms.
The agreement is scheduled to be signed on Wednesday. U.S. Energy Secretary Chris Wright arrived in Venezuela on Tuesday. Chevron is also expected to announce a major expansion of its operations in the country the same day.
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