U.S. Energy Secretary Chris Wright arrived yesterday, Tuesday, in Venezuela for meetings with officials following the announcement of an agreement that will allow Washington to control approximately one-fifth of the country’s oil reserves.
In Venezuela, both the National Assembly and the military have expressed their support for this agreement.
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Wright arrived at approximately 8:30 p.m. (local time, 3:30 a.m. Greek time) at Maiquetía International Airport, which serves Caracas.
“Many agreements” will be announced today, which “will lead to a more than twofold increase in Venezuela’s oil production in the coming years,” he told the media upon his arrival.
“I believe that very good years lie ahead with the arrival of major investments in this country that will create more jobs, increase upward pressure on wages, and provide opportunities for Venezuelans,” Wright added.
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Venezuela has the world’s largest oil reserves, estimated at more than 300 billion barrels. However, its production remains very limited, at about 1.2 million barrels per day. At its historic peak, it had reached more than 3 million barrels per day.
U.S. President Donald Trump announced on August 28 that he had reached an agreement with Venezuela, under which the U.S. will assume majority control of more than 65 billion barrels of the country’s reserves. According to him, this is “the largest oil deal in world history,” thanks to which U.S. oil reserves will double.
Venezuela’s interim president, Delcy Rodríguez, assured that the country retains sovereignty over the oil wells to be exploited by the U.S.
Meanwhile, yesterday the country’s National Assembly announced that it supports the agreement, following a vote that took place.
“Venezuela has the largest oil reserves and is the 20th-largest oil exporter. The 20th! And there are some who want this situation to continue,” commented National Assembly President Jorge Rodríguez, brother of the country’s acting president.
Opposition lawmaker Luis Emilio Rodón called for greater transparency: “We need to know what the fine print says (…) the terms. We demand that we be given the full text.”
That evening, the military—which plays a decisive role in Venezuela—also approved the agreement: “We support, approve, and agree with all the terms of the recent strategic agreement (…) In a single sentence, I would say that it concerns the prosperity and well-being of the country, as well as our own,” said Defense Minister General Gustavo González López during a televised address.
The agreement aims to “stabilize” Venezuela’s economy, said U.S. Secretary of State Marco Rubio in an interview with a Venezuelan journalist that was broadcast on YouTube.
Wright had stated yesterday, Tuesday, that the agreement was drawn up “above all to strengthen U.S. national sovereignty,” while also assuring that its goal is to help Venezuela “succeed in the long term.”
“Geopolitical opportunity”
It also allows, as the U.S. secretary acknowledged, the U.S. to make a decisive move against its major competitors. “This agreement represents a geopolitical opportunity to protect reserves that were largely under the influence of Chinese and Russian companies,” he explained.
The agreement stipulates that the U.S.-backed company North American Blue Energy Partners (NABEP), Venezuela’s second-largest private oil company, owned by businessman Alejandro Betancourt, will lease 17 oil wells for 100 years, whose oil reserves are estimated at approximately 65 billion barrels.
In exchange, the company will offer Washington the option to purchase 20% of its production at cost. The oil will then be processed at refineries in the United States.
Following the military operation to capture Venezuelan President Nicolás Maduro in January, Trump is seeking to restart the exploitation of the country’s oil and natural gas under his leadership.
The U.S. imposed an embargo on crude oil exports from Venezuela in 2019, which remains in effect. Following Maduro’s ouster, Washington is gradually easing the sanctions.
Furthermore, Chevron is preparing to make a “significant announcement” today, a source close to the negotiations told AFP on Tuesday.
Source: KYPE
