Trump's Venezuela Oil Deal Raises Red Flags for Major Producers

U.S. President Donald Trump's deal to gain access to a fifth of Venezuela's oil reserves has raised red flags for some major producers, according to sources familiar with the situation.

The White House released details of an arrangement under which private oil firm North American Blue Energy Partners (NABEP) would receive a 100-year lease for 17 oilfields in Venezuela holding around 65 billion barrels of oil reserves. The U.S. will take a 35% equity stake in the corporate parent company, receive a guaranteed 20% of the oil production, and hold a right-of-first-refusal to purchase all remaining output.

However, some oil majors and large foreign companies are hesitant to invest in Venezuela due to concerns over the involvement of Venezuelan businessman Alejandro Betancourt, who has been investigated by U.S. and European authorities in the past but was never charged. He has denied allegations against him.