The U.S. has struck a significant oil deal with Venezuela, placing a controversial businessman at the center of the agreement. Alejandro Betancourt, majority shareholder in north american Blue Energy Partners (NABEP), is now a pivotal figure in this venture, despite facing investigations in Spain and Switzerland for alleged money laundering.
The deal, announced by the White House, grants the U.S. majority control over 65 billion barrels of Venezuelan oil. This agreement follows the January military seizure of former Venezuelan President Nicolás Maduro, who is currently jailed in New York. The U.S. gains access to 20% of the crude with the right of first refusal to buy the remaining 80%.
The Rise of Alejandro Betancourt
Betancourt, a graduate of Boston’s Suffolk University, has been a prominent figure in Venezuelan business circles. His company, NABEP, is the second-largest private Venezuelan oil producer. However, his business dealings have not been without controversy. In 2018, he was under investigation in the U.S. for the alleged theft of over $1 billion from Venezuela’s state-owned oil company, PDVSA, though no charges were filed.
Recent reports indicate that Betancourt was living in the United Kingdom as recently as May, fighting a Swiss extradition request over an investigation into alleged money laundering. Simultaneously, authorities in Spain were investigating his company, Derwick Associates. The FinCEN Files investigation revealed how Betancourt and other young Venezuelan businessmen moved vast sums of public money out of Venezuela, including funds intended for housing and other basic services.
Betancourt’s Role in U.S. Strategy
Betancourt’s role in the U.S.-Venezuela oil deal marks a striking change of fortune. According to sources familiar with U.S. policy in Venezuela, Betancourt was key to U.S. strategy and planning in the lead-up to the January operation that removed Maduro from power. The deal grants the U.S. access to about one-fifth of Venezuela’s crude reserves for decades, with the Pentagon’s Office of Strategic Capital taking a 35% stake in NABEP.
The White House’s statement about the new oil venture with Venezuela did not mention Betancourt as the owner of NABEP, nor did it make any mention of the businessman’s current and past investigations. A U.S. official stated that most of the legal challenges against Betancourt were nearly a decade old and that he currently has no legal problems in the United States.
The Investigations and Their Impact
Betancourt has been investigated in the United States, Spain, and Switzerland but never indicted. In the months before Maduro’s capture, Betancourt provided information that helped enforce a U.S. naval blockade targeting sanctioned oil tankers operating in Venezuela. This led to the seizure or interdiction of more than a dozen vessels. He also facilitated negotiations with officials, including Delcy Rodriguez, who became interim president after Maduro’s capture.
Despite the investigations, Betancourt’s role as a key intermediary continued, helping broker oil deals and other partnerships. In January, he helped broker a key oil trading agreement that has led to the export of more than 135 million barrels of crude and fuel to the United States, Europe, India, and the Caribbean. Betancourt has also been present in meetings at Venezuela’s Miraflores presidential palace, including during a visit by U.S. Energy Secretary Chris Wright.
The investigations into Betancourt have had a significant impact on his business dealings. Earlier this year, U.S. federal prosecutors in Florida paused their investigation into Betancourt in connection with an alleged plan that involved embezzling over $1 billion from PDVSA and laundering it through real estate in Miami and bank accounts in Malta and Switzerland. The Swiss government dropped its request to extradite him from the United Kingdom in May, though the criminal proceedings against him are still proceeding.
Betancourt is a prominent member of the so-called Bolichicos, a younger generation of business people who amassed fortunes during the administration of former Venezuelan leader Hugo Chavez. His company, Derwick Associates, won roughly $2 billion in government contracts, further fueling allegations of corruption and money laundering.
