Business & Finance
U.S. targets Venezuelan oil in historic deal with interim government
The Trump administration announced an agreement for a joint venture to tap 65 billion barrels of Venezuelan oil reserves.
The short version
- President Donald Trump announced a bilateral agreement with Venezuela's interim President Delcy Rodríguez aimed at taking control of 65 billion barrels of oil.
- Controversial Venezuelan tycoon Alejandro Betancourt has been tapped to lead the joint venture, though his appointment has drawn sharp criticism due to past corruption allegations.
- The agreement aims to bolster depleted U.S. petroleum reserves and counter high oil prices driven by global tensions, but experts express deep skepticism over the physical feasibility of the target.
Key facts
- President Donald Trump announced an agreement with Venezuelan interim President Delcy Rodríguez to grant majority control over more than 65 billion barrels of proven oil reserves to a joint venture.[Al Jazeera · France 24]
- The joint venture is led by 46-year-old Venezuelan businessman Alejandro Betancourt, head of North American Blue Energy Partners (NABEP).[Al Jazeera · France 24]
- The U.S. Pentagon's Office of Strategic Capital will hold a 35 percent passive ownership stake in NABEP, and the State Department secured a right to purchase 20 percent of output at cost.[Al Jazeera]
- Under the agreement, NABEP receives 100-year concessions for 17 oil fields previously owned by Russian or Chinese companies, with plans to invest up to $100 billion in new infrastructure.[Al Jazeera]
- Betancourt, who built his fortune from state contracts under Hugo Chávez, has faced money laundering and embezzlement investigations in Spain, Switzerland, and the U.K., though he has never been formally charged or convicted.[Al Jazeera · France 24]
- Florida Democratic Senate candidate Angie Nixon criticized the deal, accusing Trump of pushing communism by taking over and selling off Venezuela's oil reserves.[Fox News]