US Seizes Control of Venezuela's Oil Assets from Russian and Chinese Firms

The United States is expanding its role in Venezuela's oil sector through a new agreement that grants US-backed North American Blue Energy Partners (NABEP) control of 14 newly awarded contracts. This move displaces Russian and Chinese operators, with five fields previously managed by Chinese companies and one by a Russian firm.

The takeover is part of a broader oil agreement announced last week by US President Donald Trump, which secured access to around 64 billion barrels of Venezuela's proven oil reserves through a partnership with private business. NABEP is expected to control 17 projects in total, including two previously operated by China Concord Resources, which was sanctioned by the US in 2019 over Iran-related activities.

The White House estimates that NABEP will pay approximately $200 billion in royalties and taxes over the first 25 years. Washington will also gain a direct stake in the operation, with the right to hold rights to a 35% stake in NABEP's corporate parent and receive preferential access to 20% of its oil production at cost.

The agreement shifts several Venezuelan oil assets away from Russian and Chinese operators while giving Washington a direct financial role and preferential access to production from some of the world's largest proven oil reserves.