U.S. officials defend deal with controversial Venezuelan oil baron
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Newsletters Axios Local Show Axios Pro Axios Live The Axios Show Login Axios All topics Axios Search Updated 4 hours ago - Energy & Climate U.S. officials defend deal with controversial Venezuelan oil baron Ben Geman , Marc Caputo email (opens in new window) sms (opens in new window) facebook (opens in new window) twitter (opens in new window) linkedin (opens in new window) bluesky (opens in new window) Add Axios on Google Add Axios as your preferred source to
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U.S. officials are defending their work with Venezuelan businessman Alejandro Betancourt in the unprecedented White House move to effectively gain control over huge oilfields in the country.
Why it matters: Betancourt is the colorful and controversial figure who heads North American Blue Energy Partners (NABEP), the oil company partnering with the administration in the agreement that gives the U.S. preferential access to output from 17 major fields.
Driving the news: At a briefing with reporters Tuesday, a U.S. official talked up Betancourt as a "proven operator" in the country's oil sector that has been vetted by the administration.
"There's a reality here, okay, and that is that not just here, but in other parts of the world, you have to deal with the dynamics sometimes that are in place in order to get to where you want to get to," the official said.
Catch up quick: Betancourt, 46, is the linchpin to Trump's plan to increase U.S. access to oil and strengthen its dominance in the hemisphere, which became clear after the Jan. 3 removal of Venezuelan strongman Nicolas Maduro.
Catch up quick: In 2018, Betancourt was listed as an unnamed "conspirator" in a federal indictment of his cousin and seven others in a $1.2 billion international money-laundering scheme involving manipulated currency exchange rates between U.S. dollars and Venezuelan bolivars.
Ultimately , Swiss officials acknowledged the case was in its early stages and that they didn't have enough to proceed, thereby restoring his passport in the U.K., which allowed Betancourt to travel to Caracas and D.C. to complete the deal.
Yes, but: The unusual agreement to expand output in Venezuela is facing questions about its legality, durability, and whether it's a form of neo-colonialism.
The big picture: U.S. officials say the deal will bring the capital and expertise to develop the Venezuelan oil sector for the benefit of the country's people, in contrast with the prior regime.
Contrary to the claims of critics, the official said, the deal "adds to the democratic transition … it lays the groundwork for that to actually happen and for Venezuela to have a chance to be a successful republic in the long term."
The intrigue : Betancourt rocketed to fame and infamy over lucrative Venezuelan power-plant construction contracts won by his company, Derwick Associates, in Venezuela between 2008 and 2011.
What they are saying: Betancourt, his attorneys and spokespeople have denied wrongdoing and created a 19-page rebuttal to the accusations over Derwick that have dogged him to this day.
What's next: Chevron is expected to announce a major expansion of its operations in Venezuela tomorrow.
Editor's note: This story has been updated with additional quotes from the briefing.
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