US-Venezuela Oil Deal Sparks Controversy Over Legality and Transparency

A secretive oil deal between the US and Venezuela has sparked controversy among energy experts and lawyers over its legality and potential impact on the country's fragile economy. The agreement, announced by President Donald Trump last week, grants the US access to a fifth of Venezuela's crude reserves, estimated at 65 billion barrels.

The deal does not appear to have followed a competitive process, with the US selecting companies to operate the fields without disclosing which firms will be involved. North American Blue Energy Partners (NABEP), a company led by controversial Venezuelan investor Alejandro Betancourt, has reportedly expressed interest in working on the project.

Experts have questioned the deal's legality, particularly since the US will control the selection of companies and models to operate the fields. 'Despite being formally recognized by the U.S., the agreement can be brought to court in the future,' said Juan Carlos Apitz, head of Central University of Venezuela's law faculty.

The deal is expected to generate $100 billion in investment and $209.3 billion in royalties and taxes over 25 years, with some $19 going directly to Venezuela per barrel produced. However, analysts have expressed concerns that the tax revenue may be lower than what the law mandates, citing a lack of transparency surrounding Venezuelan oil policy.