The Daily Journal. — The Venezuelan government confirmed that hydrocarbon agreements with Chinese and Russian state-owned and private companies will remain in effect. It rejected claims that the recent energy deal with the United States would exclude capital from either country from oil extraction projects in Venezuela.
Hydrocarbons Minister Paula Henao outlined the government’s official position during an interview with private television network Venevisión, where she addressed regulatory questions surrounding the status of Petróleos de Venezuela S.A. (PDVSA)’s traditional partners following the arrival of U.S. operators.
“We have agreements with China and Russia, and these are joint ventures with valid authorizations to conduct primary activities. We fully respect those agreements,” the minister said.
Asked specifically whether corporations from Beijing and Moscow would lose their place in Venezuela’s energy sector following the signing of the investment and supply agreement with Washington, Henao confirmed that the existing joint ventures will retain their current concession frameworks and work schedules.
“They will continue carrying out their activities,” the official emphasized.
The clarification comes after U.S. Energy Secretary Chris Wright visited Caracas last Wednesday to oversee the signing of new hydrocarbon agreements with companies including Chevron and Eni.
Speaking from the Venezuelan capital, Wright told Bloomberg that China will have no rights to collect revenue from the country’s new oil production.
A day before those remarks, China’s Ministry of Foreign Affairs called on Venezuelan authorities to protect Chinese investments in the country.
“China’s legitimate rights and interests in Venezuela must be safeguarded,” Chinese Foreign Ministry spokesperson Guo Jiakun said.
Since Caracas and Washington announced their bilateral agreement on August 28, energy-sector analysts have raised the possibility that U.S. operators could take over assets in areas where Chinese corporations currently maintain a presence, including Sinopec and the China National Petroleum Corporation (CNPC).
