A sweeping United States-backed oil venture in Venezuela faced fresh scrutiny on September 5 after Reuters reported that its central private partner, billionaire Alejandro Betancourt, had previously been investigated for alleged money laundering linked to funds taken from state oil company PDVSA. Betancourt has never been indicted, and his lawyer said authorities in several countries examined the allegations without bringing charges.
The agreement gives the Pentagon's Office of Strategic Capital a 35 percent economic position in North American Blue Energy Partners, or NABEP, the company controlled by Betancourt. A US official said the position uses low-cost warrants designed to preserve Washington's share while the venture raises development capital. The State Department also receives the right to buy 20 percent of NABEP output at production cost and preferential access to the remainder at market prices.
NABEP received 100-year rights to develop 17 Venezuelan fields estimated to contain 65 billion barrels, without a competitive award process, according to Reuters. The White House presents the arrangement as a route to reliable crude supplies, lower fuel costs and private investment in Venezuela. AP reported that questions remain over whether acting President Delcy Rodríguez can grant rights of that duration and whether later governments would uphold them.
Reuters said four people familiar with US policy described Betancourt as an important source of assistance before the January operation that removed Nicolás Maduro. The report said he supplied information useful to a naval blockade and helped contacts between Washington and Caracas. Reuters could not determine when prosecutors paused a Florida investigation involving an alleged scheme to divert more than $1 billion from PDVSA, or whether that decision was connected to his cooperation.
A US official said the matters were nearly a decade old, Betancourt currently faces no US legal problem and NABEP's operating record made it the best available partner. His lawyer rejected the implication of unresolved wrongdoing. Venezuela's government did not answer Reuters' questions. The latest disclosures intensify demands for transparency because public agencies hold financial and purchasing rights in a venture awarded to a private operator.
The commercial stakes are substantial but execution will require years and major capital. Venezuela has more than 303 billion barrels of proven reserves, according to OPEC data cited by AP, yet produces only a little above one million barrels daily after prolonged underinvestment and sanctions. Chevron separately plans to invest more than $7 billion over five years and target about 600,000 barrels a day. Investors will now watch financing, contract disclosure, legal challenges and whether promised production actually reaches US refineries.
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