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U.S. government-backed firm set to take over Venezuelan oil fields
North American Blue Energy Partners, backed by the U.S., was granted 14 oil deals by the Venezuelan government and the U.S. will have rights to a 35% stake in the company.
A U.S. government-backed oil company controlled by Venezuelan business tycoon Alejandro Betancourt is set to replace Chinese and Russian operators of several Venezuelan oil fields, Reuters reported, citing two unnamed U.S. officials.
The company, North American Blue Energy Partners, has been granted 14 oil deals by the Venezuelan government. Under the arrangement, the U.S. government will have rights to a 35% stake in the company, plus access to 20% of NABEP production at cost, with a right of first refusal for the purchase of the remaining 80% of production from Venezuelan fields.
The article says NABEP plans to scale production by investing up to $100 billion in new oil infrastructure in Venezuela. The White House said the move would support economic growth, thousands of high-paying jobs, and broader economic activity.
According to the report, the fields NABEP will take over were previously operated by Chinese companies including Sinopec and China National Petroleum Corp., as well as Russia’s Roszarubezhneft, a state-owned entity that managed joint ventures with PDVSA.