The Trump administration has announced a deal to develop oil fields in Venezuela through a partnership with North American Blue Energy Partners. The agreement, unveiled in details released last week, involves the Pentagon’s Office of Strategic Capital taking a 35 percent stake in the firm. Administration officials stated the partnership is intended to extract energy from the country’s estimated 65 billion barrels of reserves following the January capture of former President Nicolás Maduro by U.S. forces.
The partnership has drawn scrutiny from lawmakers and analysts regarding the background of the company’s leader, Alejandro Betancourt. Reporting by The Washington Post and The Miami Herald has linked Betancourt to multiple international investigations involving alleged money laundering and embezzlement in Switzerland, Spain, and the United States. Secretary of State Marco Rubio defended the selection, stating there were no active U.S. investigations against Betancourt and describing him as a proven operator with knowledge of the Venezuelan energy system.
Under the terms of the agreement, a new company has been granted rights to untapped oil fields for 100 years. The U.S. government will receive 55 percent of the effective output, which includes an ownership stake and the right to buy oil at cost for military and strategic reserves. Acting Venezuelan President Delcy Rodríguez stated the deal could attract $100 billion in investment and generate $209 billion in tax revenue for Caracas. Democratic lawmakers, including Rep. Mike Levin (D-CA) and Rep. Raja Krishnamoorthi (D-IL), have requested a full accounting of the deal, citing concerns over Betancourt's history and potential pressure on foreign criminal probes.
For Venezuelans, the deal reinforces the administration of acting President Delcy Rodríguez. While Rodríguez stated the revenue would fund housing and economic recovery, Venezuelan opposition leader María Corina Machado and academic critics argued the agreement may allow the current administration to avoid democratic transitions. Although Rodriguez’s job approval was reported at 22% following recent earthquakes, the deal provides her government with a projected $209 billion in long-term tax revenue. This financial support comes as Rodríguez refuses to set a specific date for presidential elections, despite ongoing discussions with opposition groups.
The deal establishes a new precedent for the U.S. Department of Defense, specifically the Office of Strategic Capital, to hold direct equity in foreign energy operations. Legal experts warned that the 100-year contract faces significant risks, as future U.S. or Venezuelan administrations could attempt to withdraw from or challenge the agreement’s validity. Large U.S. oil firms like Chevron and Exxon Mobil have either declined to comment or remained cautious about joining the venture. What happens next depends on the transparency of financial flows and whether the Venezuelan National Assembly, which approved the deal this week, proceeds with scheduled diplomatic talks regarding a democratic transition.