Venezuela's oil concession transfer to the United States draws backlash over China-Venezuela cooperation and international law protections

[Financial News] The Chinese government has pushed back against the transfer of some Venezuelan oil concessions to the United States, saying cooperation between China and Venezuela in the oil sector is legally protected.
At a regular briefing on the 1st, Guo Zhaokun, spokesperson for the Ministry of Foreign Affairs of the People's Republic of China, responded to a question about reports that a U.S. oil company would take over Venezuelan oil concessions held by Chinese firms. He said, "China has consistently maintained that relations between countries should be handled in accordance with the purposes and principles of the UN Charter."
Guo added, "In carrying out economic and trade cooperation between countries, the principles of equality, mutual benefit, cooperation and shared success must be followed." He said, "I want to emphasize that cooperation between China and Venezuela is protected by international law and the laws of both countries, and China's legitimate rights and interests in Venezuela must be guaranteed."
As some oil concessions in Venezuela operated by Chinese and Russian companies were transferred to a private oil firm linked to the United States, it was reported that the business interests of China Petroleum & Chemical Corporation (Sinopec) and China National Petroleum Corp. (CNPC) were also included.
Earlier, foreign media outlets reported on the 31st of last month, citing U.S. officials, that the Government of Venezuela was set to grant 14 new oil development concessions to North American Blue Energy Partners (NABEP).
NABEP is a private oil company run by local businessman Alejandro Betancourt, who is close to Delcy Rodríguez, Venezuela's interim president.
The transfer of these concessions follows an oil agreement signed by U.S. President Donald Trump and President Rodríguez.
The United States is said to hold a 35% non-operating stake in NABEP and will also have the right to buy 20% of production at cost.
The 14 development concessions awarded to NABEP reportedly include five concessions previously operated by Chinese companies during the administration of President Nicolas Maduro, as well as one concession run by a Russian company.
As a result, the influence of China and Russia, which have played major roles in Venezuela's energy industry for years, is expected to diminish.
With the newly acquired 14 concessions, NABEP will develop a total of 17 Venezuelan oil fields. The combined estimated reserves of those fields amount to 65 billion barrels. Under the oil agreement between President Trump and President Rodríguez, the United States will secure 55% of production.
A U.S. official claimed, "The U.S. government and companies have secured access to crude oil that had been sent to China."


[email protected] Reporter Lee Seok-woo, international affairs Reporter