Venezuelan Billionaire With Past US Scrutiny Now Central to Pentagon Oil Pact

A Venezuelan billionaire who was the subject of a US money-laundering investigation is now a central figure in a major oil agreement between Washington and Caracas. Alejandro Betancourt helped broker the deal, which grants the United States access to a significant portion of Venezuela's crude reserves for decades.

The arrangement involves the Pentagon's Office of Strategic Capital taking a 35% stake in Betancourt's company, North American Blue Energy Partners (NABEP). The State Department has secured the right to buy 20% of NABEP's oil at cost and preferential access to the remaining output.

Federal prosecutors in Florida paused their investigation into Betancourt earlier this year. The probe concerned an alleged scheme to embezzle over $1 billion from Venezuela's state-owned oil company PDVSA and launder the funds through Miami real estate and foreign bank accounts. Betancourt has been investigated in the US, Spain, and Switzerland but has never been indicted.

A US official said most of Betancourt's legal challenges are nearly a decade old and that he currently has no legal problems in the United States. The official added that NABEP's record of pumping oil in Venezuela made Betancourt the best partner to help boost output under the arrangement.

Betancourt's role extends beyond the recent deal. He reportedly provided information that helped enforce a US naval blockade targeting sanctioned oil tankers before the capture of former President Nicolas Maduro. He also facilitated negotiations with Venezuelan officials, including interim president Delcy Rodriguez.

Switzerland withdrew its request to extradite Betancourt from the United Kingdom in May. The Zurich Public Prosecutor's Office said the case against him is still proceeding, but declined to comment on whether the US influenced the decision. A Swiss legal scholar called the withdrawal unusual, noting it is not typical when a case is continuing.

Betancourt is a prominent member of the so-called Bolichicos, a younger generation of business people who amassed fortunes during the Hugo Chavez administration. His company Derwick Associates won roughly $2 billion in government contracts to build power plants during the country's electricity crisis in the 2010s, though many plants later operated at a fraction of their capacity. Betancourt and Derwick have denied wrongdoing.

While some former Trump administration advisers view Betancourt as a useful intermediary, several former US intelligence officials, prosecutors, and diplomats have privately expressed concern about his influence on US policy given his past legal scrutiny and proximity to former Venezuelan officials.