U.S. Officials Support Partnership with Venezuelan Businessman Alejandro Betancourt

<p>U.S. officials are defending their collaboration with Venezuelan businessman Alejandro Betancourt in a White House initiative aimed at gaining control over significant oilfields in Venezuela.</p><p><strong>Background: </strong>Betancourt leads North American Blue Energy Partners (NABEP), the oil company involved in an agreement that grants the U.S. preferential access to oil output from 17 major fields.</p><hr /><ul><li>The Pentagon's Office of Strategic Capital is acquiring a 35% equity stake in NABEP.</li><li>The U.S. will also have the right to purchase 20% of the oil at cost after NABEP pays its taxes to Venezuela.</li></ul><p><strong>Details: </strong>During a press briefing, a U.S. official described Betancourt as a "proven operator" in Venezuela's oil sector, stating he has been vetted by the administration.</p><ul><li>The official acknowledged the realpolitik involved in increasing oil output in Venezuela, which has large reserves but low production due to years of mismanagement.</li></ul><p><strong>Quote from Official: </strong>"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 stated.</p><ul><li>"I'm being blunt: we make choices like this all over the world."</li><li>"Geopolitics is often not the choice between the ideal and the imperfect. It is often, you're trying to navigate what's the best outcome, and you have to work with the factors that you have in place."</li><li>Other senior administration officials have acknowledged Betancourt's past troubles but deemed the partnership worth the risk.</li></ul><p><strong>Context: </strong>Betancourt, 46, is central to the U.S. strategy to enhance access to Venezuelan oil and strengthen U.S. influence in the region, particularly following the removal of Venezuelan leader Nicolas Maduro on January 3.</p><ul><li>His connections to the Trump administration and involvement in anti-Maduro efforts in 2019 positioned him as a suitable partner for the U.S. government.</li><li>"I'm not nominating anyone for sainthood here. What I am telling you is that this is a person that, in the past, has been helpful to the United States government," the official remarked.</li><li>Additionally, "there are no charges he's facing in the United States for violation of any of our laws."</li></ul><p><strong>Legal Issues: </strong>In 2018, Betancourt was named as an unnamed "conspirator" in a federal indictment related to a $1.2 billion international money-laundering scheme, but he was never charged due to a successful defense argument that he was unaware of the scheme.</p><ul><li>The case involved Venezuela's state-run oil company PDVSA and properties in Miami, with authorities in Switzerland reviving the case last year.</li><li>This spring, U.S. officials intervened on Betancourt's behalf with Swiss authorities, allowing him to travel to Caracas and Washington, D.C. to finalize the deal.</li></ul><p><strong>Concerns: </strong>The agreement to increase oil production in Venezuela has raised questions regarding its legality and implications, with some critics suggesting it resembles neo-colonialism.</p><ul><li>Jason Bordoff, founding director of Columbia University's Center on Global Energy Policy, indicated that the agreement may conflict with Venezuelan law, a claim U.S. officials dispute.</li><li>Bordoff noted that the arrangement appears to echo historical British control over Persian oil.</li></ul><p><strong>U.S. Officials' Position: </strong>Officials assert that the deal will provide the necessary capital and expertise to develop the Venezuelan oil sector for the benefit of the country's population, contrasting it with the previous regime.</p><ul><li>They argue that it is part of broader competition with U.S. adversaries.</li><li>"Do we want Russia and Chinese companies controlling the wealth of a country in our hemisphere, or do we want the United States, in combination and partnership with the Venezuelan people, having influence over those resources?" the official stated.</li></ul><p><strong>Official's Conclusion: </strong>Contrary to critics' claims, the official asserted that the deal "adds to the democratic transition" and lays the groundwork for a successful future for Venezuela.</p><ul><li>"The last thing we want to see is a new democratically elected government inherit a country in crisis," the official added.</li></ul><p><strong>Background on Betancourt: </strong>Betancourt gained notoriety for lucrative construction contracts in Venezuela between 2008 and 2011.</p><ul><li>In 2013, former U.S. Ambassador to Venezuela Otto Reich sued Betancourt for alleged corrupt practices, and federal prosecutors opened an investigation into his company, Derwick Associates, the following year.</li></ul><p><strong>Betancourt's Defense: </strong>Betancourt and his representatives have denied any wrongdoing and have provided a rebuttal to the accusations against him.</p><ul><li>"No prosecutor in any jurisdiction has indicted Derwick Associates or its principals," the rebuttal states.</li></ul><p><strong>Upcoming Developments: </strong>Chevron is anticipated to announce a significant expansion of its operations in Venezuela soon.</p><p><em>Editor's note: This story has been updated with additional quotes from the briefing.</em></p>