US Grabs Control of Venezuela Oil Reserves, Threatens China's Latin America Strategy
The US administration's involvement in Venezuela's oil industry has complicated China's strategy in Latin America. China was a key player in Venezuela, providing support against US sanctions and isolation.
Venezuela was one of the countries at the forefront of China's push to expand its geopolitical and economic influence in the region. China upgraded its relationship with Venezuela to an 'all-weather strategic partnership' during Maduro's state visit in 2023.
The US has struck a deal that gives it majority control of around a fifth, or more than 65 billion barrels, of Venezuela's proven oil reserves. The agreement grants the US a 35% stake in North American Blue Energy Partners (NABEP), which controls 17 oil fields, and the right to purchase 20% of all current and future output at production cost.
US Energy Secretary Chris Wright told Bloomberg TV that China will not have any debt claims to the revenue from Venezuela's new oil production. Chinese companies were entitled to a portion of Venezuela's reserves under arrangements that predated the Trump administration's new deal.