U.S. Takes Over Chinese Companies in Venezuelan Oil Fields, Another Major Blow to the CCP

Venezuelan expatriates in the United States gathered to celebrate the capture of Maduro. (Video screenshot)

[People News] On August 31, the White House revealed the details of an oil agreement between U.S. President Trump and Venezuela. A few days prior, Trump announced on his social media that this is 'the largest oil agreement in world history,' which is set to double U.S. oil reserves.

In response, Venezuela's interim president, Rodríguez, confirmed on social media that the agreement aims to 'develop 17 strategic oil fields, with proven reserves of 6.5 billion barrels of crude oil, an investment exceeding $100 billion, and will generate over $209 billion in tax revenue for the Venezuelan government.' This will naturally create more job opportunities for the people of Venezuela.

Recent data indicates that Venezuela's GDP grew by 7.14% year-on-year in the second quarter of 2026, a significant acceleration from the 2.51% growth in the first quarter. This increase is clearly linked to the surge in market confidence in Venezuela following the arrest of former President Maduro and subsequent U.S. intervention.

According to the agreement details, the interim authorities of Venezuela have granted a 100-year franchise to North American Blue Energy Partners (NABEP) for 17 oil fields. These fields contain approximately 6.5 billion barrels of proven oil reserves, which account for about one-fifth of Venezuela's total proven reserves, surpassing the approximately 4.6 billion barrels of proven oil reserves in the United States.

NABEP has granted its parent company a 35% stake to the Pentagon's Strategic Capital Office, while the U.S. State Department has secured the right to purchase 20% of oil production at production cost, along with a priority purchase right for the remaining 80%.

These oil fields were previously controlled or operated by Russian entities, Chinese Communist Party (CCP) companies, or individuals closely linked to Maduro and Chavez. The White House has accused these foreign powers of exploiting Venezuelan resources to benefit U.S. adversaries such as Cuba, Russia, and the CCP, without making adequate investments in local infrastructure and economic development.

This agreement represents a win-win situation for both the U.S. and Venezuela, but it spells trouble for the CCP, which has strong ties to the Chavez and Maduro regimes and has heavily invested in Venezuela's oil sector.

Venezuela, often referred to as America's backyard, has been a crucial base for the CCP's influence expansion in Latin America and a means to counter U.S. interests, which explains the CCP's robust support for Maduro over the past decade.

In addition to providing political support and engaging in investment cooperation, China has closely collaborated with Venezuela in trade, energy, agriculture, technology, education, and other sectors, while also offering military support. Since 2000, the Chinese Communist Party (CCP) has invested nearly $60 billion in Venezuela through various funds to help develop infrastructure in exchange for oil supplies. By 2025, China is set to become Venezuela's largest creditor, with the country owing hundreds of billions of dollars.

Further data indicates that state-owned enterprises of the CCP, including China National Petroleum Corporation and China Petroleum & Chemical Corporation, have been involved in projects in Venezuela's Orinoco heavy oil belt, such as the PETROURICA joint venture in the Junin 4 block. Sinopec has participated in oil operations related to the Junin 1 and Junin 8 blocks, while China United Resources Limited has operated two oil projects within Venezuela. Some of these projects have been impacted by the North American Agreement.

Before Maduro's capture, China imported 80% of Venezuela's exported oil. For example, in 2025, China's average daily crude oil imports from Venezuela were approximately 389,000 barrels, with around 85% of the Chinese companies purchasing Venezuelan oil originating from Shandong. Most private refineries in Shandong can process nearly 3 million tons of this heavy oil each year.

Following the official implementation of the North American Agreement, the avenues for Shandong refineries to import oil have become more restricted, and oil imports from Iran and Russia are also facing limitations. What will these refineries do?

Moreover, for the CCP, Venezuela's complete alignment with the United States signifies that its investments and influence in Latin America have effectively vanished.

In this context, the United States is openly transparent about its intentions. When announcing the details of the agreement, the White House explicitly connected it to the 'Monroe Doctrine' policy reiterated by Trump, stating that the government is focused on eliminating foreign malicious influences in America's 'backyard.' This move aims to consolidate U.S. dominance in the Western Hemisphere and support American manufacturing and energy sectors by establishing more strategic and resilient regional supply chains in collaboration with both new and longstanding partners.

As a result, the Chinese Communist Party, which has invested years of effort in Latin America, has been effectively pushed out of Venezuela by the United States and is now facing exclusion from the broader Latin American region. The CCP's ambitions for global control have once again encountered a significant setback.

(First published by People News)△