Venezuela votes to support oil deal with US through private firm

Venezuela's National Assembly votes to support an oil deal with

the United States through private joint-venture with the

South America country's second largest oil producer that could over time

generate billions of dollars for the economically wrecked nation.

Shortly after the vote, Venezuela's top oil company

Chevron confirms it will expand its operations in country, investing an

additional 7 billion US dollars over the next five years as it is being

assigned more acerage at the Orinoco Oil Belt.

US Energy Secretary Chris Wright landed Tuesday night

in Venezuela's La Guaira, as he is expected to meet with

Acting President Delcy Rodriguez to sign an unprecedented

oil deal on Wednesday.

Earlier Tuesday, Venezuela's National Assembly voted in support of the deal

that will see Venezuela give a new private company set up by the US government

100-year rights over 17 Venezuelan

oil fields with proven reserves of 65 billion barrels.

National Assembly President Jorge Rodriguez says new technology could help recover oil

from the region's depleted fields and increase production in the Orinoco Belt and Maracaibo Lake.

He projects an additional 1.5 million barrels a day under the agreement.

It's a move that could, over time, generate billions of dollars for the

economically drained nation.

Rodriguez promises oil revenue would help fund hospitals, schools, electricity

services and better wages.

But it'll likely take years before the projected daily production can be reached.

Venezuela's oil industry has been weakened by years of mismanagement,

underinvestment and the departure of skilled workers,

with US sanctions deepening its difficulties.

Restoring production on a large scale faces significant

infrastructure and political obstacles.

And ten weeks after two deadly earthquakes hit the country, its main airport,

the Simon Bolivar International Airport,

has only just partially resumed commercial operations.

This as the country is still on the mend from the deadly earthquakes in

June that has claimed the lives of more

than 6,500 people and left 18,000 homeless.

Touted by US President Donald Trump as "the biggest oil deal in world history,"

the agreement will see the US create a private company as a joint venture

with North American Blue Energy Partners, owned by Venezuelan businessman

Alejandro Betancourt, the South American country's second largest operator

behind Chevron.

The US company is set take over some oilfields previously run by Chinese and Russian firms.

Reuters quoted an unnamed US official as saying they don't think "this is

anything the Chinese weren't expecting."

But Chinese Foreign Ministry Spokesperson Guo Jiakun on Tuesday

said its cooperation with Venezuela is protected by international law, and relations between

countries should be handled in accordance with the purposes and principles of the UN Charter.

He furthered that China's legitimate rights and interests in Venezuela must be protected.