US explains oil deal with Venezuela by lower prices and countering Russian and Chinese influence
The administration of US President Donald Trump stated that the multibillion-dollar oil deal with Venezuela is intended to help lower fuel prices for Americans and weaken the influence of Russia and China in the country. Channel NewsAsia reports, citing AFP.
Venezuela’s government-controlled National Assembly approved the deal on September 1. According to the agency, it gives the United States control over approximately one-fifth of the country’s oil reserves. A US official speaking on condition of anonymity said that the ability to reliably purchase oil at cost is important to US national interests.
Access to oil fields
The deal provides the United States with priority access to 17 oil fields, including facilities previously operated by Russian and Chinese companies. According to the US official, Washington sees this as a geopolitical opportunity to redirect assets that had been predominantly under Chinese and Russian influence toward cooperation with the United States.
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According to CNA, US Energy Secretary Chris Wright was due to arrive in Venezuela on September 1, while the signing of the deal was planned for September 2. On the same day, Chevron was expected to announce a significant expansion of its operations in Venezuela. After meeting with oil company executives at the White House, Trump said on Truth Social that he intended to strengthen US energy dominance.
Opposition position and NABEP’s involvement
Some opposition lawmakers in Caracas abstained during the vote, insisting that they needed to review the written terms of the agreement. Lawmaker Luis Emilio Rondón said that parliamentarians must know the details of the deal. National Assembly Speaker Jorge Rodríguez, in turn, said that the funds from it should benefit Venezuelans.
Under the terms of the deal, the US government will receive a 35% stake in North American Blue Energy Partners, Venezuela’s second-largest private oil company. It is run by Venezuelan businessman Alejandro Betancourt, who has been accused of involvement in a corruption scheme at the state oil company PDVSA. The US official described Betancourt as an experienced operator. The White House said that NABEP will give Washington the right to buy 20% of the oil produced by the company at cost, while US citizens must make up a majority on the board of directors. The US government will also have veto power over board members.
