Trump Taps Controversial Venezuelan Businessman to Lead New Oil Venture

Alejandro Betancourt, a Venezuelan businessman with ties to former President Hugo Chavez, has been tapped by the Trump administration to lead a new US-backed oil venture in Venezuela.

The deal, announced by President Donald Trump, gives the US government a majority stake in North American Blue Energy Partners (NABEP), Venezuela's second-largest oil firm, which is led by Betancourt.

Betancourt has made fortunes in Venezuela, particularly after his firm Derwick Associates won contracts to build power plants under Chavez's government following an acute power crisis triggered by drought in the late 2000s. Critics say the firm often won those contracts without bidding, earning billions of dollars.

The deal aims to exploit Venezuela's vast oil resources and help the US refill its petroleum reserves, which are at a record low. The joint venture with NABEP will help expand production, as Iran's blockade of the Strait of Hormuz has spiked global oil prices, including in the US.