Trump Touts Venezuela Oil Deal as 'Unbelievable Value' Amid Skepticism
The White House has revealed more details about President Trump's plan to tap into Venezuela's oil industry. The deal, which was announced last week, will give the Pentagon a stake in roughly a fifth of Venezuela's vast oil reserves.
The agreement is with North American Blue Energy Partners (NABEP), a company owned by Venezuelan businessman Alejandro Betancourt. As part of the deal, NABEP will receive 100-year rights to operate 17 oil fields with proven reserves of 65 billion barrels.
Betancourt's company has agreed to invest $100 billion in new oil infrastructure, and the U.S. government will have a 35% ownership stake through the Pentagon's Office of Strategic Capital. The deal also includes a guarantee for the U.S. to purchase 20% of the output at cost.
Trump and his aides are pitching the deal as an opportunity to develop a new oil giant in the Western Hemisphere, but analysts have expressed skepticism about the plan's feasibility. Some lawmakers on Capitol Hill have also raised concerns about the agreement, citing potential risks to U.S. taxpayers and the Venezuelan people.