Venezuela hands the US control over a fifth of its oil in landmark deal

Venezuela's National Assembly has approved a deal that grants the United States control of approximately one-fifth of the country's oil reserves, solidifying Washington's influence over the government it helped establish after removing President Nicolás Maduro in January. US officials argued that the multibillion-dollar agreement would lower oil prices for Americans and counter Russian and Chinese influence near the nation's borders.

The US Energy Secretary, Chris Wright, arrived in Venezuela on Tuesday, with the signing of the agreement scheduled for the following day. Chevron, an oil giant, was expected to announce a major expansion in the country on the same day.

US officials claimed that the deal would address soaring petrol prices caused by the Iran conflict, aiming to reduce the price of gasoline for American consumers. They also hoped the Venezuela agreement could help the administration in their quest to tame soaring fuel prices, which might affect the outcome of the crucial US midterm elections in November. This development could significantly impact the Republican Party's chances in Congress.

Secretary of State Marco Rubio stated that the US government, specifically the Defense Department, would hold a special account allowing it to take possession of a certain percentage of the assets. The agreement would enable a private company to increase production and attract private investment to develop the productive capacity of these fields. According to Rubio, the vast majority of the 17 fields were under Chinese and Russian control before the deal.

Some opposition lawmakers in Caracas abstained from voting on the US deal, demanding to see the written terms before approving it. National Assembly Chief Jorge Rodríguez argued that the money from the deal would benefit Venezuelans, stating, "Who benefits from this oil if it stays underground?" Venezuela's Defence Minister, Gustavo González López, gave the deal full military backing, describing it as "prosperity and well-being for the country."

The controversial aspect of the deal lies in the involvement of Alejandro Betancourt, a Venezuelan businessman linked to questionable activities during Hugo Chávez's socialist administration. Betancourt runs North American Blue Energy Partners (NABEP), Venezuela's second-largest private oil company, in which the US government will hold a 35% stake under the agreement. Betancourt was accused of involvement in a corruption scheme at Venezuela's state-run PDVSA oil company.

However, a US official stated that Betancourt was a "proven operator," while acknowledging that geopolitics sometimes involved dealing with "imperfect" characters. The deal allows NABEP to purchase 20% of the oil produced by the firm at production cost, while the US government will have veto power over its board members. US citizens must constitute a majority of the firm's board of directors, granting Washington effective control over the operation.

The US administration believes that the deal would curb corruption in the struggling Venezuelan oil industry and prevent Caracas from giving away much of its supplies to its ally, Cuba.