U.S. officials defend deal with controversial Venezuelan oil baron

U.S. officials are standing by their partnership with Venezuelan entrepreneur Alejandro Betancourt to secure control over significant oil reserves in the South American nation. Betancourt leads the oil firm North American Blue Energy Partners (NABEP), which has inked a deal with the administration to gain preferential access to output from 17 major fields. The Pentagon's Office of Strategic Capital holds a 35% stake in the company, with the U.S. having the right to purchase 20% of the oil at cost after taxes to Venezuela.

During a reporter briefing on Tuesday, a U.S. official praised Betancourt as a proven operator in the Venezuelan oil sector, who has been vetted by the administration. The official acknowledged the "realpolitik" behind the effort to increase oil production, emphasizing that navigating geopolitical factors is often necessary to achieve the desired outcome. The official noted that similar choices are made globally, stressing that the U.S. government works with the available factors to achieve the best possible results.

Two other senior administration officials echoed the sentiment, acknowledging Betancourt's past and the risk involved in partnering with him. Betancourt, 46, played a crucial role in the Trump administration's plan to boost U.S. access to oil and strengthen its influence in the region following the ousting of former Venezuelan president Nicolas Maduro in January 2021.

Betancourt's ties to the previous Trump administration, his anti-Maduro activities in 2019, and his involvement in the U.S. coup against Maduro made him an ideal partner for the current administration.

Betancourt has faced legal troubles in the past, including a 2018 indictment for alleged involvement in a $1.2 billion international money-laundering scheme. However, he was never charged due to his attorneys arguing that he was unaware of the scheme. In 2018, Betancourt was also sued by a former U.S. ambassador in New York for alleged kickbacks and corrupt activities. Betancourt and his legal team have denied all charges and created a detailed rebuttal to those accusations.

While the agreement to expand oil output in Venezuela faces questions about its legality and potential implications, U.S. officials argue that the deal will bring capital and expertise to develop the Venezuelan oil sector for the benefit of the country's people. The deal also serves as part of the U.S.'s broader competition with adversaries like Russia and China, who might otherwise control the hemisphere's valuable resources.