Trump's Venezuelan Oil Deal Hinges on Divisive Business Partner
The Trump administration has announced a deal to develop Venezuela's vast oil resources, which would give the US government significant control over a large portion of the country's reserves. The deal relies on Alejandro Betancourt López, a powerful and divisive Venezuelan businessperson whose family controls North American Blue Energy Partners (NABEP), the second-largest private oil producer in Venezuela.
Under the agreement, the US would work with NABEP to develop 17 oil fields across Venezuela, which are expected to produce over $200 billion in tax revenue for the government. The deal would give the US majority control over a significant portion of Venezuela's proven oil reserves and allow the country to gain preferential access to cheap Venezuelan oil.
Betancourt, whose company plans to take up to $5 billion in debt to raise output to 1 million barrels per day in the next five years, has been under scrutiny for his role in Venezuela's energy industry. He rose to prominence in the 2010s after being awarded contracts by the Venezuelan government to build power plants, despite having no experience doing so.