US to take 35% stake in Venezuelan oil firm tied to sanctioned tycoon
What's the deal? The US Department of Defense's Office of Strategic CapitalDealroom has a profile for this one. Try Dealroom → will acquire a 35% stake in Blue Energy Partners of North AmericaDealroom has a profile for this one. Try Dealroom →, an oil company owned by Venezuelan billionaire Alejandro Betancourt. The long-term arrangement would give Washington access to roughly one-fifth of Venezuela's crude oil reserves, according to Reuters.
The terms: The US State Department will have the right to buy 20% of the company's oil production at cost, plus priority access to the remaining 80% of output. The stated aim is to revive Venezuela's oil sector and lift crude production.
Why now? The deal follows major political developments in Venezuela this year and new US arrangements with energy companies to develop the country's oil fields after years of decline and sanctions.
The numbers: Betancourt helped facilitate an oil-trading arrangement reached in January that has moved more than 135 million barrels of crude and fuel to the US, Europe, India, and the Caribbean, per tanker-tracking data. That volume is about half of Venezuela's total oil exports through the end of August.
Four sources also said Betancourt provided information supporting a US maritime blockade of sanctioned tankers, which led to the seizure or interception of more than 12 vessels.
What could go wrong? Betancourt's selection has drawn scrutiny given prior investigations in the US, Spain, and Switzerland. Federal prosecutors in Florida earlier this year halted a probe into an alleged scheme involving the embezzlement of more than $1 billion from state oil company Petróleos de VenezuelaDealroom has a profile for this one. Try Dealroom → and laundering through Miami real estate and accounts in Malta and Switzerland.
Swiss authorities also investigated Betancourt. In May, they withdrew an extradition request from Britain, though the Zurich prosecutor's office confirmed criminal proceedings against him remain ongoing.
A US official said most of Betancourt's legal difficulties date back nearly a decade and that he currently faces no legal issues in the US, pointing to his experience running Venezuelan oil fields. Former American intelligence, law-enforcement, and diplomatic officials have raised concerns over his influence and ties to senior figures in the governments of Hugo Chávez and Nicolás Maduro.
The signal: The deal marks a sharp shift for Betancourt — from a businessman once under financial scrutiny to a central partner in a US strategy to rebuild Venezuela's oil industry and increase crude flows to global markets.
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