STOCKS | Trump’s Venezuela Oil Deal Hinges on a Powerful, Controversial Partner

According to Sina Finance, the Trump administration’s agreement to develop Venezuela’s vast oil resources is unusual because the U.S. government will work with a highly influential and controversial Venezuelan businessman. According to Sina Finance, four people familiar with the deal said the United States will cooperate with Alejandro Betancourt Lopez, whose family controls North America Blue Energy Partners, Venezuela’s second-largest private oil company. Three of those people said the federal government expects to support development of a large share of Venezuela’s proven oil reserves through the Pentagon’s Office of Strategic Capital, while Betancourt’s company will lead operations. The deal covers 17 oil fields in Venezuela. According to Sina Finance, Venezuelan President Delcy Rodriguez backed the agreement and said in a statement last Friday night that it would have a major impact on the country’s revival and could bring the government more than $200 billion in tax revenue. Trump said the deal gives the United States “majority control” over a large share of Venezuela’s oil reserves. According to Sina Finance, the details remained unclear as of Saturday afternoon, and changes are still expected as the project moves forward.