Pentagon Enters Oil Deal with Venezuelan Billionaire Previously Probed by US

A Venezuelan billionaire who was the target of U.S. money-laundering investigations is now a key partner in a long-term oil deal with the Pentagon, a strategic pivot that follows his reported assistance to Washington. The agreement gives the U.S. government significant access to Venezuela's vast crude reserves through a company controlled by businessman Alejandro Betancourt.

Details of the Strategic Partnership

The deal, announced last week, involves a direct investment by the U.S. Department of Defense. According to a Reuters report, the key terms include:

• The Pentagon’s Office of Strategic Capital will acquire a 35% stake in North American Blue Energy Partners (NABEP), an oil producer in Venezuela co-founded by Betancourt.
• The U.S. State Department gains the right to purchase 20% of NABEP's oil output at cost.
• The U.S. will also have preferential access to the remaining 80% of the company's production.

This arrangement marks a significant shift in U.S. policy towards Venezuela and provides a new channel for accessing the nation's energy resources. A U.S. official, who spoke on the condition of anonymity, told Reuters that NABEP's production record made Betancourt the best partner to help increase the country's oil output.

A Reversal of Fortunes

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The agreement represents a stark turnaround for Betancourt. According to multiple sources cited by Reuters, he was instrumental in the U.S. strategy leading to the January 3 capture of former Venezuelan leader Nicolas Maduro. Betancourt allegedly provided intelligence that helped enforce a U.S. naval blockade on sanctioned oil tankers and facilitated negotiations with Venezuelan officials.

Until recently, U.S. federal prosecutors in Florida were investigating Betancourt in connection with a scheme to embezzle over $1 billion from the state-owned oil company PDVSA. Reuters could not determine when prosecutors paused the investigation or if it was in exchange for his cooperation. In an email, a lawyer for NABEP stated that the allegations have been "examined extensively by authorities" and that "no charges have been brought against him."

Lingering Legal Scrutiny

Despite the new partnership, Betancourt remains under investigation in other jurisdictions. Swiss authorities are still pursuing a money-laundering case against him, although they withdrew an extradition request from the United Kingdom in May. According to sources familiar with the matter, U.S. officials had pressured the Swiss government to ease its inquiries.

Betancourt, a prominent member of the so-called "Bolichicos" who amassed wealth during the Hugo Chavez administration, has also faced scrutiny in Spain. Last year, authorities there reportedly launched a new investigation into Betancourt for money laundering involving an alleged $4 billion embezzled from PDVSA. For investors, the deal highlights the complex intersection of geopolitics, national security, and energy markets, where high-risk figures can become strategic assets for governments.