Archive · 4 Sep 2026
US-Venezuela Oil Deal Targets Reserves and China’s Influence
The United States is helping arrange a new oil company in Venezuela.
The company would work across 17 oil fields with about 65 billion barrels of proven reserves.
The US government would own 35% of the company.
US buyers could also purchase 20% of its oil at cost, rather than paying an extra market premium.
Alejandro Betancourt would be involved in the venture, although he has faced past corruption accusations.
US officials say he is a capable operator who has helped the government before.
China has lent Venezuela billions of dollars and has received oil in return.
The deal could reduce China’s role in Venezuela and increase tensions between China and the United States.
A new Venezuelan oil venture would cover 17 fields holding about 65 billion barrels of proven reserves.
The United States government would receive a 35% stake and the right to buy 20% of production at cost.
The arrangement would give US buyers access to Venezuelan crude without a market-based premium.
Alejandro Betancourt, who leads North American Blue Energy Partners, is involved despite past accusations tied to PDVSA corruption.
The deal aims to secure Venezuelan oil for Washington while limiting China’s claims and influence over the sector.
- Who
- The United States government, the Venezuelan oil venture, Alejandro Betancourt, China, and the Venezuelan government are central to the arrangement.
- What
- A proposed oil arrangement would give the United States a 35% stake in a new Venezuelan venture and the right to buy 20% of its production at cost.
- When
- The article discusses statements made on Wednesday and China’s response at a Thursday briefing; it does not provide calendar dates for the deal.
- Where
- Venezuela, with broader implications for US-China relations in Latin America.
- Why
- Washington seeks access to Venezuela’s oil and wants to reduce China’s economic influence over the country’s energy sector.
US Strategic and Commercial Case
Chinese Rights and Sovereignty Concerns
Control of oil revenues
US Strategic and Commercial Case
The Trump administration’s arrangement would give the United States a direct stake in the venture and access to Venezuelan crude, while US Energy Secretary Chris Wright said Beijing would have no claims to production revenue.
Chinese Rights and Sovereignty Concerns
China says its legitimate rights and interests in Venezuela must be protected and argues that its cooperation with Venezuela is protected by international law and does not concern third parties.
Alejandro Betancourt’s role
US Strategic and Commercial Case
A US official defended Betancourt as a proven operator and said governments sometimes have to work with imperfect figures who have previously helped the United States.
Chinese Rights and Sovereignty Concerns
Critics point to accusations that Betancourt was involved in a corruption scheme at Venezuela’s state-run PDVSA, making his participation controversial.
Geopolitical impact
US Strategic and Commercial Case
Washington’s supporters view the deal as a way to secure energy access and reassert US economic influence in the Western Hemisphere.
Chinese Rights and Sovereignty Concerns
Analysts warn that excluding Chinese interests from strategically important Latin American assets could increase friction between China and the United States.
- Fields covered
- 17 Venezuelan oil fields
- Proven reserves
- About 65 billion barrels
- US government stake
- 35% of the new venture
- US purchase right
- 20% of production at cost
- Chinese lending
- Chinese state banks extended more than $60 billion in oil-backed lending to Venezuela by 2015
- Estimated remaining debt
- At least $10 billion by 2025
- China’s import exposure
- Venezuelan crude accounted for 4% of China’s total oil imports in 2025