US COMPANY TO TAKE OVER PART OF OIL FIELDS PREVIOUSLY OPERATED BY CHINESE AND RUSSIAN COMPANIES

WASHINGTON, SEPTEMBER 1 /SRNA/ - US oil company North American Blue Energy Partners will take over part of the oil fields in Venezuela previously operated by Chinese companies and one Russian company, Reuters reported, citing US officials.

The US company will take over the oil fields under a broad oil production agreement that US President Donald Trump announced with Venezuela.

The company has received 14 new contracts from the Venezuelan Government. According to officials, Chinese companies previously operated five of the projects, while a Russian company managed one.

US oil magnate Harry Sargeant previously owned the company, which is now controlled by Venezuelan businessman Alejandro Betancourt, who confirmed the deal.

The company will have operational control over operations, while the US Government will hold a 35 percent stake in the company, as well as preferential access to 20 percent of its output at the cost of production.

The White House said that the company had granted the US State Department the right of first refusal to purchase the remaining 80 percent of its output.

US President Donald Trump said last week that, through a partnership with the private sector, the United States had secured access to around 64 billion barrels of Venezuela’s proven oil reserves.

The deal gives US companies a foothold in some of Venezuela’s strategically most important oil fields, while simultaneously pushing back Chinese and Russian interests that have played a significant role in the country’s energy sector for years.