US–Venezuela Oil Deal Won’t Hinder Country’s Democratic Transition, US Official Says

A U.S. official on Sept. 1 defended Washington’s new oil deal with the interim government of Venezuela, saying that it does not impede the country’s shift toward democracy.

“This in no way impedes a democratic transition, nor does it mean that it cements the interim government,” the official said during a call with reporters.

The official explained that the deal supports Venezuela’s transition to a democratic process, addressing concerns in Washington that it would strengthen the position of interim Venezuelan President Delcy Rodríguez.

The deal was negotiated by U.S. Secretary of State Marco Rubio, U.S. Secretary of War Pete Hegseth, and Rodríguez through a partnership with private businesses, according to an Aug. 28 post by U.S. President Donald Trump.

According to the official, the deal is “a geopolitical opportunity” for the United States to control oil fields that had been largely under the influence of Russian and Chinese companies.

On Aug. 31, the White House released details about the deal that would give the United States access to 65 billion barrels of Venezuela’s oil reserves.

Under the deal, Venezuela’s interim government would grant North American Blue Energy Partners (NABEP) 100-year concessions for 17 oil fields.

The U.S. government will control more than half of this entity’s value through direct equity and guaranteed at-cost offtake, meaning discounted oil purchases.

As part of the agreement, NABEP would grant the Pentagon’s Office of Strategic Capital a 35 percent equity stake in its corporate parent, and the U.S. State Department will have the right to buy 20 percent of the output from all current and future fields operated by NABEP at production cost.

Some politicians from both sides of the aisle said the United States should have waited for a legitimate democratic government in Venezuela before making any agreement.

However, the U.S. official said the Trump administration is actively working to bring democracy and free and fair elections to Venezuela.

The official said talks related to these efforts are expected to resume in mid-September.

The United States wants Venezuela’s new, democratically elected government to inherit a stable, functioning country rather than a broken one, the official said, noting that the oil deal is intended to help ensure that the new government succeeds.

Media outlets have also highlighted the controversial background of Alejandro Betancourt, owner of NABEP, the Venezuelan operator partnering with the U.S. government.

“We vetted him through our system. There are no charges he’s facing in the United States for violation of any of our laws,” the U.S. official said of Betancourt.

“He was already the largest private company in Venezuela that was operating and had a good track record of delivering.”

Another U.S. official addressed questions about the Pentagon’s legal authority to take equity stakes in a Venezuelan operator.

“The equity position is structured consistent with the statutory authority granted to the Office of Strategic Capital at the Department of War,” the official said. “This particular authority was granted to the [Office of Strategic Capital] when it was created by statute during the Biden administration.”

U.S. forces carried out airstrikes on Venezuela’s capital, Caracas, on Jan. 3 and captured then-Venezuelan leader Nicolás Maduro and his wife, Cilia Flores, in a raid at their residence. They were flown to New York City to face drug- and arms-related charges in the United States.

Rodríguez, who served as Maduro’s vice president, was later named interim president by the country’s Supreme Tribunal.