Secret Terms of Trump’s Venezuela Oil Deal Reveal Sweeping U.S. Control and Oligarch Protections

A newly revealed 18-page strategic partnership agreement between the Trump administration and a controversial Venezuelan energy firm exposes the specific mechanics of what President Donald Trump has called the “biggest oil deal in world history.” The document, signed by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth, outlines a structure that favors U.S. strategic interests while cementing the authority of a small group of handpicked individuals to manage Venezuela’s vast oil reserves.

The agreement establishes a 15-year framework for North American Blue Energy Partners (NABEP), a company led by Alejandro Betancourt, a billionaire who has faced international scrutiny and money-laundering investigations in three countries. Under the terms of the accord, the United States government is acquiring a 35% stake in the venture through a parent company registered in Barbados. The deal document provides sparse information regarding the other owners and investors in this parent entity, potentially allowing private parties to amass significant wealth under a veil of corporate secrecy.

The governance structure of the venture is specifically designed to be “future-proof,” according to people familiar with the negotiations. The agreement mandates a seven-member board that must maintain a majority of U.S. citizens at all times. Betancourt is named as the chief executive, and the terms make his removal exceptionally difficult, requiring a supermajority vote of five members to oust him or change the board’s composition. This arrangement was intended to prevent subsequent U.S. or Venezuelan administrations from dismantling the partnership or reversing its terms.

While the Trump administration has publicly estimated the deal could generate $200 billion in royalties and tax payments for Venezuela, the text of the agreement does not explicitly obligate NABEP to pay those specific amounts. Furthermore, the role of the Venezuelan government and any direct benefits to its citizens are largely absent from the 18-page text. Instead, the document focuses on securing American energy dominance and providing specific financial advantages to the U.S. government.

One of the most significant financial provisions is the right for the United States to purchase 20% of NABEP’s oil at a steep discount of $30 per barrel—roughly one-third of recent market prices. However, the agreement contains a potential logistical oversight: it does not account for the cost of blending materials. Much of Venezuela’s crude is too thick to flow through pipelines without being mixed with thinner oil products, which often comprise 20% or more of the final blend. The cost of importing these materials could significantly erode the value of the $30-per-barrel price point.

In addition to the discounted oil, the U.S. has secured “first priority” to purchase all of NABEP’s remaining production for the next 50 years. This includes an irrevocable right to seize the entire oil supply if the U.S. declares a national emergency. The U.S. also holds “most favored nation” status, requiring the company to disclose any other business agreements and grant the U.S. matching terms if they are more favorable.

The legality of the agreement remains a point of contention. While the White House has claimed the deal secures energy access for a century, the 50-year and 100-year terms referenced by some officials appear to contradict Venezuelan law, which generally limits oil concessions to 25 years. Additionally, the agreement dictates that any disputes must be settled in U.S. courts, specifically the United States District Court for the Northern District of Texas, applying either U.S. federal law or Texas state law rather than Venezuelan statutes.

The selection of Alejandro Betancourt as the primary partner has drawn sharp criticism from former diplomats and members of Congress. Although his spokesperson, Terry Wade, maintains that neither Betancourt nor his associates have ever been charged with a crime, the 46-year-old billionaire was recently under house arrest at his estate in England while fighting an extradition request from Swiss authorities. Critics, including former U.S. diplomat Brian Naranjo, have described Betancourt as an emblem of corruption, alleging his primary asset is political influence rather than technical expertise.

The deal also involves Orlando Alvarado, who signed the agreement alongside Betancourt, Hegseth, and Rubio. Alvarado, a longtime executive in Betancourt’s business network, was previously identified by federal prosecutors as an unindicted co-conspirator in a scheme to embezzle funds from Venezuela’s state oil company, Petróleos de Venezuela, SA (PDVSA). NABEP has dismissed these claims as baseless, citing the company’s track record of expanding production in a collapsed industry.

The path to the agreement began in earnest in early spring, following the seizure and removal of President Nicolás Maduro by U.S. forces in January. While U.S. officials initially considered large publicly traded firms like Chevron or Exxon, those companies reportedly balked at the complexity of the Venezuelan market or were relegated to “second class” status during negotiations. Betancourt’s firm emerged as the preferred partner, partly because its private nature allowed for more flexible and secretive terms than those required for public companies.

The Pentagon’s Office of Strategic Capital, led by David Lorch, became the primary vehicle for financing the U.S. stake. The U.S. plans to acquire its 35% share by paying just $0.01 per warrant share, a transaction the White House claims could eventually be worth hundreds of billions in dividends. However, Democrats on the Senate Armed Services Committee have questioned the legal authority of the Pentagon to execute such a deal with a foreign entity in a country still under U.S. sanctions.

As the deal nears its final closing conditions, it faces mounting scrutiny. Senate Democrats have demanded more transparency, noting that many of the oil fields in question are not yet ready for production and may not impact global markets for a decade. With midterm elections approaching, the partnership between the U.S. government and a foreign oligarch is expected to be a central focus of congressional oversight hearings.