Trump Announces Controversial Oil Deal with Venezuela Amid Legal Hurdles
US President Donald Trump has announced an oil deal involving Venezuela after the capture of Venezuelan President Nicolás Maduro in January 2026. The Pentagon's Office of Strategic Capital (OSC) owns a third of North American Blue Energy Partners (Nabep), Venezuela's second-largest private oil firm, with the aim of influencing Venezuelan oil production.
Experts have questioned the deal's legality and practicality, citing Venezuelan law that limits oil deals to 25 years, not the implied 100 years. They also note that the Pentagon lacks authority to hold company shares and argue that the deal will not bring new capital or replenish the US strategic petroleum reserve soon.
A key figure in the deal is Alejandro Betancourt López, a Venezuelan businessman with international ties and a complex background, partnering with the US government in Nabep. The US State Department describes the deal as private, not involving Venezuela's interim government, contradicting Trump's claim of an agreement with Venezuela.