The United States has defended its multibillion-dollar oil agreement with Venezuela, saying the deal will help reduce fuel prices at home while limiting Russian and Chinese influence in the Western Hemisphere.
US officials defended the agreement on Tuesday after Venezuela’s National Assembly backed the deal, which gives Washington control over about one-fifth of the country’s oil reserves and preferential access to 17 oil fields.
Following a White House meeting with energy executives, President Donald Trump described the agreement as a major step towards strengthening American energy dominance.
US Energy Secretary Chris Wright was also scheduled to travel to Caracas to sign the final contract.
Under the agreement, Washington would assume effective control of major oil production assets through a 35 per cent stake and veto power over the board of North American Blue Energy Partners, or NABEP.
The arrangement would also allow the United States to purchase 20 per cent of NABEP’s oil output at production cost.
The deal effectively gives Washington greater control over oil fields previously operated by Chinese and Russian companies.
US officials said the agreement would protect important geopolitical interests while preventing Venezuela from diverting oil supplies to Cuba.
They also argued that the arrangement would help tackle corruption without undermining Venezuela’s democratic transition.
However, opposition lawmakers in Caracas have raised concerns over details of the contract that have not been publicly disclosed.
Venezuelan assembly leaders and military officials nevertheless backed the agreement, presenting it as an economic cooperation framework capable of promoting peace and prosperity.
The Trump administration is banking on increased Venezuelan oil production to help stabilise rising fuel prices in the United States.
Officials also hope additional supplies will ease pressure on American consumers as the conflict with Iran continues, with the November US midterm elections approaching.
