An unprecedented deal for the U.S. to gain access to a fifth of Venezuela's oil reserves - and the central role a Venezuelan businessman will play - is prompting questions and hesitation
An unprecedented deal for the U.S. to gain access to a fifth of Venezuela's oil reserves - and the central role a Venezuelan businessman will play - is prompting questions and hesitation from some oil companies evaluating potential investments in the country, sources familiar with the situation told Reuters.
A White House fact sheet released late on Monday outlined an arrangement under which private oil firm North American Blue Energy Partners (NABEP) would receive a 100-year lease for 17 oilfields in Venezuela holding some 65 billion barrels of oil reserves. The U.S. will take a 35% equity stake in the corporate parent company, receive a guaranteed 20% of the oil production and hold a right-of-first-refusal to purchase all of the remaining output.
NABEP is controlled by Venezuelan businessman Alejandro Betancourt, who has been the subject of investigations by U.S. and European authorities following past dealings with the Venezuelan government, although he was never charged. He has previously denied allegations against him.
"Oil majors and large foreign companies negotiating contract migrations want to make sure they will not be seated at the same table with Betancourt," said a person involved in preparations for an event where energy contracts
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