Pentagon’s Office of Strategic Capital Takes 35% Stake in Controversial Venezuelan Oil Venture

Key points

• The US government will take a 35% passive stake in NABEP, with the State Department holding rights to purchase 20% of output at cost.
• NABEP plans to invest up to $100 billion in new infrastructure to scale production from 200,000 to over 1 million barrels per day.
• Alejandro Betancourt, a former ally of Hugo Chavez with a net worth of $2.6 billion, faces unresolved money laundering investigations in Spain and Switzerland.
• The Pentagon’s Office of Strategic Capital, originally created to bolster defense industry, is now leading the oil venture.
• Venezuela’s interim President Delcy Rodriguez maintains that the country retains sovereignty despite the US majority control over reserves.

Background

This deal follows a series of US interventions in Venezuela’s oil sector, including a January 2026 military operation in Caracas and accusations by Secretary of State Marco Rubio that the previous government created a hub for China and Russia. Previous archive coverage highlighted investor caution over the deal’s legitimacy and the political risks for major oil companies, while also noting Betancourt’s role as a go-between in a proposed nonviolent transition. The current agreement represents a shift from cautious joint ventures to direct government ownership through the Pentagon’s Office of Strategic Capital.

How outlets are covering it

Al Jazeera emphasizes Betancourt’s controversial past, including money laundering investigations and his ties to Hugo Chavez, while framing the deal as a US attempt to exploit Venezuela’s resources. The New York Times focuses on the unprecedented involvement of the Pentagon’s Office of Strategic Capital in an oil venture, highlighting the shift from defense industry support to energy security. CNN provides a technical critique, arguing that Venezuelan heavy oil cannot be stored in the SPR and that infrastructure repairs will take years, making the deal a poor solution for the SPR’s depletion. AP News notes that Chevron is expected to expand operations in Venezuela, suggesting broader industry involvement despite earlier caution.

Why it matters

The deal represents a significant shift in US energy policy, with the Pentagon directly involved in oil production to address the SPR’s depletion and global energy market disruptions caused by the Iran war. It also raises questions about the legitimacy of US involvement in Venezuela’s oil sector and the role of controversial figures like Betancourt in international energy deals. The outcome could impact global oil prices, US energy security, and US-Venezuela relations in the long term.

What to watch

The next steps include the implementation of the $100 billion investment plan by NABEP, the potential expansion of Chevron’s operations in Venezuela, and the resolution of Betancourt’s legal issues in Spain and Switzerland. The US government will also need to navigate the technical challenges of storing Venezuelan heavy oil in the SPR and the political risks associated with the deal. Analysts expect it to take years for production to ramp up and for any impact on US gas prices to be felt.