US defends Venezuela oil deal as step toward democratic transition

Washington has defended its agreement to take an equity stake in a venture operating Venezuelan oilfields, framing the deal as a strategic move to secure a reliable crude supply while supporting a democratic transition in the South American nation.

Speaking to reporters, a US official described the arrangement — which grants Washington access to roughly a fifth of Venezuela's oil reserves — as "a geopolitical opportunity to secure fields that primarily had largely been under the influence of Chinese and Russian companies."

The official also addressed scrutiny of Alejandro Betancourt, whose North American Blue Energy Partners is central to the deal, which includes a 100-year lease on 17 large oilfields. The businessman was vetted and "there are no charges he's facing in the United States for violation of any of our laws," the official said, adding, "I'm not nominating anyone for sainthood here."

The deal is tied to a broader US goal of fostering a "stable, democratic Venezuela," though officials acknowledged that elections are not feasible in the short term. "The last thing we want to see is a new democratic elected government inherit a country in crisis," one official said, noting that political talks between the government and opposition are set to resume in mid-September.

Separately, US Energy Secretary Chris Wright is scheduled to travel to Venezuela, where Chevron will sign an agreement to expand its operations on Wednesday.