U.S.-Backed Venezuela Oil Deal Sparks Power Struggle

The article examines a Trump administration agreement involving Venezuela’s oil industry that gives the Pentagon a 35% ownership stake in North American Blue Energy Partners (NABEP), a Barbados-based private company led by Alejandro Betancourt. Under the deal, Venezuela’s interim government has granted NABEP century-long concessions to 17 oilfields containing 65 billion barrels of proven crude reserves. If the White House’s figures are accurate, NABEP would become the world’s second-largest oil company by proved reserves, behind Saudi Aramco, and would control reserves roughly four times larger than ExxonMobil’s portfolio. The arrangement is presented as an unusual example of state capitalism under a Republican administration. In addition to its equity stake, the U.S. government can purchase 20% of NABEP’s production at the cost of production, has first refusal on the remaining 80%, can veto board appointments, and requires a majority of the board to be U.S. citizens. Critics argue these provisions amount to de facto government ownership and control of the company. Historians and legal experts say there are few precedents for the U.S. government directly owning part of an oil company operating foreign fields. The administration says the agreement is primarily a national-security and geopolitical initiative intended to secure oil supplies, replenish the Strategic Petroleum Reserve, and reduce Chinese and Russian influence in Venezuela. Energy Secretary Chris Wright said the government would not operate the fields and that its participation is meant to encourage private investment. However, major U.S. oil companies remain wary of Venezuela after the country nationalized industry assets in 2007. Chevron is the only U.S. major currently active there and has announced a separate investment plan. The article also scrutinizes Betancourt’s history of money-laundering and corruption allegations, though he has not been charged and denies wrongdoing. Finally, it raises legal and political questions about whether the administration has adequately justified its authority to make the equity deal, casting doubt on its long-term durability.

The article examines how Venezuela’s opposition is navigating a politically dangerous U.S.-backed oil agreement. Announced the previous week, the deal would give the U.S. government majority control over Venezuela’s estimated 65 billion barrels of oil reserves and is presented by acting President Delcy Rodríguez as a way to attract urgently needed foreign investment. However, Rodríguez is closely associated with former President Nicolás Maduro, whose government the article describes as authoritarian and responsible for repression, including the imprisonment of more than 300 political prisoners and the alleged theft of the 2024 presidential election. Opposition leader María Corina Machado says genuine economic development requires democratic institutions and an elected government, but she has avoided directly opposing the oil deal. The article says Machado and other opposition politicians fear that challenging the Trump administration could eliminate their prospects for political power, especially because President Donald Trump appears to favor cooperation with Rodríguez over immediate elections. Nearly all opposition lawmakers in Venezuela’s National Assembly therefore voted for the agreement. The arrangement has strengthened Rodríguez’s position despite her low domestic popularity. After her government’s response to June earthquakes that killed more than 6,500 people, one poll placed her approval rating at only 22 percent. Economist Ricardo Hausmann summarized the political benefit to Rodríguez by saying that she can give away oil while remaining in power. Although Rodríguez’s representatives are discussing a democratic transition with the opposition, critics say she is delaying the process and may attempt to complete Maduro’s term, which ends in 2030. Rodríguez has promised that presidential elections will take place but has refused to provide a date. The article portrays the oil deal as both an economic opening and a mechanism that could prolong authoritarian rule, leaving the opposition caught between supporting potential economic recovery and defending the demand for democracy.

The article examines the dramatic change in fortunes of Venezuelan billionaire Alejandro Betancourt, who moved from being the subject of money-laundering investigations to becoming a key U.S. partner in a major oil agreement with Venezuela. Betancourt allegedly assisted U.S. authorities before the January 3 operation that removed former Venezuelan President Nicolás Maduro and transferred him to New York to face drug-trafficking charges, which Maduro denies. Under the newly announced arrangement, the Pentagon’s Office of Strategic Capital will acquire a 35% stake in North American Blue Energy Partners (NABEP), Betancourt’s Venezuelan oil company. The State Department will be entitled to purchase 20% of NABEP’s production at cost and receive preferential access to the remaining output. The agreement gives the United States long-term access to roughly one-fifth of Venezuela’s crude reserves. Sources said Betancourt provided information that helped enforce a U.S. naval blockade against sanctioned oil tankers and facilitated negotiations with Venezuelan officials, including interim President Delcy Rodríguez. He also helped broker an oil-trading agreement that has supported the export of more than 135 million barrels of crude and fuel to international markets, approximately half of Venezuela’s exports through August. The arrangement has raised concerns because Betancourt was previously investigated in the United States, Spain and Switzerland over an alleged scheme involving more than $1 billion embezzled from Venezuela’s state-owned oil company, PDVSA. The U.S. investigation was reportedly paused, while Switzerland withdrew an extradition request but said its criminal case remained active. Betancourt has never been indicted, and his lawyer said authorities had examined the allegations without bringing charges. The article also details Betancourt’s background as a member of Venezuela’s “Bolichicos,” whose fortunes grew during Hugo Chávez’s government, and his controversial government power-plant contracts through Derwick Associates. Former U.S. officials and prosecutors question his influence over American policy, citing his business and political connections.