A recent exposé by ProPublica has unveiled the details of a controversial oil deal forged between Donald Trump's administration and a private company linked to the contentious Venezuelan businessman, Alejandro Betancourt López.
The agreement involves the United States securing a 35% stake in the company and gaining preferential rights to purchase Venezuelan oil at predetermined prices. However, questions continue to swirl regarding the identities of certain investors and the tangible benefits this deal might bring to the Venezuelan populace.
Secretive Agreement with a Venezuelan Businessman
ProPublica’s investigative report, published on October 20, sheds light on the previously undisclosed terms of an 18-page strategic partnership agreement announced by President Trump. This agreement allows the U.S. to obtain a 35% stake in a private enterprise controlled by Betancourt, along with favorable conditions for accessing Venezuelan oil.
The document, signed by Secretary of State Marco Rubio and Secretary of Defense Pete Hegseth, reveals that the deal was made not directly with the Venezuelan government but with North American Blue Energy Partners (NABEP), a firm whose parent company is registered in Barbados—a jurisdiction known for its lax disclosure requirements regarding shareholder identities.
Financial Terms and Strategic Implications
The agreement outlines that the United States can acquire its stake through financial instruments enabling the purchase of shares at a nominal price of $0.01 per share, with no initial cash outlay required. These acquisition rights are valid for up to 75 years, contingent upon meeting certain conditions to finalize the deal.
Moreover, the U.S. is granted the right to buy 20% of NABEP's oil output at $30 per barrel, a figure significantly below recent international market prices. However, this does not necessarily cover transportation and processing costs, which can be substantial due to the characteristics of Venezuela’s heavy crude oil.
Complex Ownership and Potential for Hidden Beneficiaries
The investigation emphasizes how the chosen corporate structure could obscure the identities of all economic beneficiaries, making it challenging for both American and Venezuelan citizens to discern who profits from the exploitation of Venezuela’s oil resources. The Barbados-based parent company is not subjected to the same public disclosure obligations as major publicly traded oil corporations.
While there are anti-money laundering controls, external audits, and requirements to provide financial information to the U.S. government, it remains uncertain whether these documents will be accessible to the public.
Controversial Businessman at the Center
The primary private partner in this agreement, Alejandro Betancourt López, is a Venezuelan entrepreneur with significant ties to energy ventures, known for his association with the "bolichicos," a group accused of amassing wealth through contracts during the Chávez era. Betancourt has faced investigations concerning alleged money laundering and irregular operations in the U.S., Spain, and Switzerland, although no charges have been filed against him.
Despite these investigations, Secretary of State Marco Rubio has publicly endorsed Betancourt as a partner, citing his company’s operations in Venezuela and noting that a review with U.S. authorities found no active investigations against him within the country.
Uncertain Benefits for Venezuela
One of the most contentious issues highlighted by the investigation is the lack of clear commitments ensuring concrete economic benefits for the Venezuelan state. The White House has touted the project as a chance to revitalize the nation’s oil industry and generate up to $200 billion in taxes and royalties over 25 years. However, ProPublica found no explicit obligations in the agreement to make such payments.
Interim Venezuelan President Delcy Rodríguez has defended the deal, asserting that the country will maintain sovereignty over its natural resources. Nonetheless, the investigation points out the limited role of the Venezuelan government in the agreement's governance structure and the lack of guaranteed benefits for the population.
Political Context and Future Uncertainties
The agreement was finalized in a period of significant political change in Venezuela following the U.S. capture of Nicolás Maduro on January 3, 2026, and the establishment of a government led by Rodríguez. Announced by Trump on August 28 as a historic oil operation, it was signed shortly after by Rubio, Hegseth, and company representatives.
While the U.S. administration defends the alliance as a means to boost Venezuelan oil production, attract investment, and secure long-term energy supplies, Democratic lawmakers have raised concerns about the transparency of the process, Betancourt's selection, and the Pentagon's legal authority to engage in such a business operation.
The White House, State Department, Pentagon, and NABEP have insisted that the partnership will yield lasting economic benefits for both nations. Yet, the documents reveal that the U.S.’s oil acquisition rights and equity stake are more precisely defined than Venezuela’s economic obligations.
This leaves a critical question unanswered: who will ultimately reap the rewards of one of Washington’s most ambitious oil deals, and what portion of these resources will truly benefit the Venezuelan people?
Frequently Asked Questions About the U.S.-Venezuela Oil Deal
What is the U.S. getting from the oil deal with Venezuela?
The U.S. is securing a 35% stake in a company linked to Venezuelan businessman Alejandro Betancourt López, along with rights to purchase Venezuelan oil at favorable prices.
Who is Alejandro Betancourt López?
Alejandro Betancourt López is a Venezuelan entrepreneur involved in major energy projects and linked to the "bolichicos," known for gaining wealth through contracts under Chávez's regime.
Why is the agreement controversial?
The controversy stems from the lack of transparency regarding the beneficiaries of the deal, the securement of favorable oil prices for the U.S., and the unclear economic benefits for Venezuela.
What are the terms for the U.S. purchase of oil?
The U.S. can purchase 20% of NABEP's oil production at $30 per barrel, with priority purchasing rights for the remaining 80% during a national emergency.