US Secretary of State Rubio defended Venezuela oil deal — South China Morning Post
US Secretary of State Marco Rubio defended Washington’s oil deal in Venezuela, saying it is an alternative to Chinese and Russian companies participating in the development of local fields. This was reported by the South China Morning Post.
According to Rubio, most of the fields for which the US partner company received concessions had previously been controlled or developed by Chinese or Russian firms. He believes US involvement will help restore production and ensure the country has access to Venezuelan oil reserves in the event of a crisis.
Concessions for 17 fields
The agreement provides for a US-backed energy company to receive 100-year concessions for 17 Venezuelan oil fields. Their proven reserves are estimated at about 65 billion barrels, and some of these sites were previously developed by Chinese and Russian companies.
Washington presents the deal as a way to increase Venezuelan oil production and gain access to the commodity. Rubio said US involvement gives the company confidence to raise capital and investment for Venezuela’s oil industry, while US authorities are not investing money in these investments.
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Opposition criticism and settlements with China
When Rubio was asked about criticism of the deal by Venezuelan opposition leader María Corina Machado and businessman Alejandro Betancourt’s ties to the old political order, he replied that Machado has the right not to support the arrangement. At the same time, the secretary of state separated the issue of the deal from holding democratic elections.
Rubio also criticized Venezuela’s previous oil arrangements with China. According to him, Beijing credited oil deliveries against Venezuela’s debt rather than making cash payments. Rubio did not provide data on the volume of such deliveries or on how to distinguish them from other oil sales.
Crediting deliveries against debt reduces the borrower’s obligations, although it does not provide immediate cash receipts. According to Rubio, Venezuelan oil is now sold at market prices, while the funds are transferred to an account controlled by the US Treasury and distributed through a licensing system.
In September, China demanded that its interests be protected after reports of the concessions emerged. Chinese Foreign Ministry spokesperson Guo Jiakun said at the time that cooperation between Beijing and Caracas is protected by international law and the legislation of both countries.
