President Donald Trump has announced a major oil agreement involving Venezuela, following the high-profile January 2026 capture of former Venezuelan President Nicolás Maduro by US forces and the subsequent installation of Delcy Rodríguez as his replacement. Under the newly unveiled pact, the Pentagon’s Office of Strategic Capital (OSC) was declared to own a third of North American Blue Energy Partners (Nabep), which ranks as Venezuela’s second-largest private oil firm. The arrangement is designed to exert direct influence over Venezuelan oil production and secure strategic crude reserves.
However, industry experts and legal analysts are strongly challenging both the legality and practicality of the agreement. Critics point out that Venezuelan law strictly limits oil development deals to a maximum of 25 years, directly conflicting with the 100-year timeline implied by the Trump administration. , legal scholars note that the Pentagon lacks the statutory authority to hold equity shares in private companies, raising immediate questions about the framework of the deal.
Beyond the legal hurdles, energy analysts remain skeptical that the agreement will deliver its intended economic results. Critics argue that the arrangement will fail to inject necessary new capital into Venezuela’s struggling energy sector or provide a quick fix to replenish the US strategic petroleum reserve. While the Trump administration frames the pact as a historic step toward rebuilding Venezuela and lowering domestic fuel prices, international observers warn that opaque terms and political instability will likely deter major international investors from participating.
The deal also brings a controversial figure to the forefront: Alejandro Betancourt, the owner of Nabep. Betancourt has a complex past marked by various international investigations, though he has never been convicted of a crime. As US officials defend the pact as a geopolitical win aimed at curbing foreign influence in South America, opposition groups inside Venezuela have expressed alarm that the agreement bypasses democratic reforms and cements power under the unelected Rodríguez administration.
