US defends Trump’s Venezuela oil deal

Washington has defended President Donald Trump's oil deal with Venezuela, asserting it would reduce oil prices for Americans and counter Russian and Chinese influence on America's border. The National Assembly of Venezuela endorsed the multibillion-dollar agreement, which grants the United States control over roughly one-fifth of the country's oil reserves.

However, concerns persist regarding the arrangement, occurring as Washington maintains an unprecedented hold on the government in Caracas following the ouster of President Nicolas Maduro in January. During a White House meeting with oil executives, Trump promoted the deal as a means to tame rising gas prices fueled by the Iran war.

US Energy Secretary Chris Wright is scheduled to visit Venezuela later that day, with the signing of the agreement set for the next day. Chevron, a major oil company, is anticipated to announce substantial expansion plans in Venezuela on the same day. The US official emphasized that the deal serves the national interest of the United States, as it ensures reliable, cost-effective oil supply for the country.

Additionally, the official argued that the deal sets Venezuela up for long-term success and denies that it solidifies the interim government led by Delcy Rodriguez, Maduro's former vice president. In Caracas, certain opposition lawmakers abstained from voting on the deal, insisting they should review the written terms beforehand.

National Assembly chief Jorge Rodriguez argued that the deal's financial gains would benefit Venezuelans. The US official stated that the deal allows the US to seize facilities previously controlled by Russian and Chinese entities, aligning them with the United States. However, one contentious aspect of the deal involves Alejandro Betancourt, a Venezuelan businessman associated with questionable activities during Hugo Chavez's socialist rule.

Betancourt heads North American Blue Energy Partners (NABEP), Venezuela's second-largest private oil company, which the US government will hold a 35% stake in under the deal. Betancourt was alleged to be involved in a corruption scheme at Venezuela's state-run PDVSA oil company. The US official defended Betancourt, stating he is a "proven operator" despite acknowledging that geopolitics sometimes necessitate working with imperfect individuals.

Under the agreement, NABEP will grant Washington the right to purchase 20% of the oil produced by the firm at production costs, with US control over the firm's board of directors and veto power over its members. The official claimed that the deal would eliminate corruption in Venezuela's oil industry and prevent Caracas from distributing a significant portion of its oil supplies to its ally Cuba.

The US administration sees cheaper oil as a priority ahead of the crucial midterm elections in November, during which his Republican Party could lose control of Congress.