Full Breakdown
Trump-Venezuela Oil Deal Raises Transparency Concerns
By Drooid · · How we work
Deal Overview
President Donald Trump’s administration negotiated an agreement that gives the United States a 35 % stake in North American Blue Energy Partners (NABEP), a Venezuelan-controlled oil producer owned by businessman Alejandro Betancourt. The contract, obtained by ProPublica, also grants Washington the right to purchase 20 % of NABEP’s output at a fixed price of $30 per barrel. The deal is presented as a means to revive Venezuela’s oil sector and generate royalties for the Venezuelan government.
Structure and Investor Anonymity
Ownership of the 35 % stake is to be acquired through a Barbados-registered parent company. The contract does not disclose the ultimate owners or investors behind that entity. According to people familiar with the negotiations, the opaque structure is intended to make the arrangement difficult for future U.S. or Venezuelan administrations to unwind. Orlando Alvarado, a longtime associate of Betancourt, signed the agreement on behalf of the Barbados parent alongside Betancourt, Secretary of State Marco Rubio and Defense Secretary Pete Hegseth.
Legal and Investigative Context
Betancourt’s past involvement in money-laundering investigations has drawn scrutiny. Reuters reported that U.S. prosecutors paused a probe into an alleged scheme to divert more than $1 billion from Venezuela’s state oil company, though the agency could not confirm whether the pause was linked to Betancourt’s cooperation with U.S. authorities before the January operation that removed Nicolás Maduro from power. Spain’s El País later noted that a related money-laundering and tax-evasion investigation remained stalled while a judge awaited assistance from Washington. Betancourt has not been criminally charged in the United States, Venezuela, or Spain.
Official U.S. Position
The White House has asserted that the agreement will encourage private investment in Venezuela’s oil industry and deliver economic benefits to both nations. It emphasizes that the contract is designed to support the country’s recovery and generate substantial royalties, although the document does not explicitly guarantee the $200 billion in royalties and taxes the administration has cited.
Congressional Scrutiny
Democratic Representatives Robert Garcia, Gregory Meeks and Jared Huffman have formally requested information from the State and Justice Departments regarding Betancourt’s role and the broader U.S. involvement in international investigations concerning him. NABEP has denied any wrongdoing by Betancourt and defended its operational record.