Pentagon Is in Talks With Venezuelan Mogul for Massive Oil Deal
The US government is pursuing a major stake in Venezuelan oil reserves via a potential partnership between the Department of Defense and Alejandro Betancourt, a controversial energy investor who has become a key middleman between the two countries.
The U.S. Department of Defense is engaged in negotiations with energy investor Alejandro Betancourt to acquire a stake in Venezuelan crude reserves, according to Bloomberg. The talks revolve around potentially securing control over 17 oil fields across Venezuela's major basins, signaling a strong U.S. push to gain greater influence over the nation's energy infrastructure.
One scenario under consideration could grant Washington a 100-year lease on assets such as the Junin area in the Orinoco belt and fields near Lake Maracaibo.
The Pentagon's Office of Strategic Capital, established in 2022 to steer private capital towards essential sectors, is being eyed to oversee the potential investment. This move aligns with similar initiatives by major corporations like Chevron Corp. and Halliburton Co., who are close to finalizing multi-billion-dollar agreements to augment Venezuelan production. Chevron aims to incorporate two additional heavy-oil fields into its existing joint ventures with PdVSA, the state-owned producer.
Since January, when former President Nicolás Maduro was apprehended and Delcy Rodríguez took over, the U.S. has effectively assumed control over Venezuelan oil sales and eased sanctions. Despite President Donald Trump's enthusiasm for reviving Latin America's former oil powerhouse, actual output recovery has been slow as major energy firms grapple with persistent political instability.
Meanwhile, with global crude prices surging due to Iran-related conflict and supply constraints from the Middle East, there's a growing urgency for Western investment. While traditional majors such as ExxonMobil Corp. and ConocoPhillips are cautious, independent intermediaries and service firms seem poised to spearhead the first wave of reinvestment.
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