The U.S. government has entered into an unconventional arrangement to develop Venezuela’s extensive oil reserves, partnering with Alejandro Betancourt López, a prominent and controversial Venezuelan businessman. The deal, announced by President Donald Trump late last week, involves significant U.S. backing for oil production efforts led by Betancourt’s company, North American Blue Energy Partners (NABEP), which controls Venezuela’s second-largest private oil producer.

According to multiple sources familiar with the agreement, the Pentagon’s Office of Strategic Capital will provide financial support for developing 17 oil fields across Venezuela, with Betancourt’s company overseeing operations. The arrangement is expected to grant the United States “majority control” over a large share of Venezuela’s proven reserves, though some details remain fluid as the project evolves.

Venezuela’s government under Vice President Delcy Rodríguez has endorsed the deal, highlighting its potential to generate over $200 billion in tax revenue and contribute to the country’s economic recovery. This marks a significant shift in U.S.-Venezuelan relations, as it follows the Trump administration’s earlier efforts this year to remove Nicolás Maduro from power and engage closely with Rodríguez’s administration.

The agreement aligns with President Trump’s broader strategy to bolster U.S. energy security and reduce reliance on Middle Eastern oil. A U.S. official noted that increasing Venezuelan production could help moderate global energy market volatility, especially amid geopolitical tensions involving Iran. However, experts caution that reviving Venezuela’s oil production will take years due to the country’s oil sector’s longstanding challenges, including mismanagement, corruption, and the effects of U.S. sanctions. Currently, Venezuela produces just over one million barrels per day, roughly one percent of global output, similar to levels under Maduro.

NABEP, headquartered in Barbados, currently produces around 200,000 barrels per day and aims to expand output to one million barrels within five years, supported by up to $5 billion in debt financing. The U.S. government plans to secure its stake in the venture through warrants, financial instruments that confer the right to purchase shares at set prices, potentially providing preferential access to Venezuelan oil.

Betancourt, 46, emerged in the 2010s as part of a cohort dubbed “bolichicos,” businessmen who benefited from contracts awarded during Venezuela’s Bolivarian Revolution despite limited prior experience in some sectors. His involvement in power plant projects and acquisition of mature oil fields has allowed NABEP to grow its portfolio substantially. Still, Betancourt’s reputation is mixed; his bank accounts have been under Swiss investigation for over a decade, although no charges have been filed. NABEP’s general counsel stressed that Betancourt has never been formally accused of wrongdoing.

Despite the controversies, the Trump administration views Betancourt’s track record of increasing oil production as a valuable asset. U.S. officials, including Secretary of State Marc Rubio, have actively supported Betancourt, advocating for easing Swiss investigations and lifting travel restrictions imposed by the United Kingdom. The administration has also facilitated his entry into the United States for discussions.

While the Pentagon has declined to provide detailed comments on its role, the Office of Strategic Capital asserted that it conducts thorough legal and regulatory reviews before engaging in transactions. The partnership represents a notable departure from traditional U.S. policy toward Venezuela, reflecting a pragmatic approach to securing energy interests amid complex political dynamics.