Trump-backed Venezuela oil deal sparks investor caution over legitimacy

The Trump administration unveiled an agreement making Alejandro Betancourt’s NABEP the minority partner in a new company that will oversee more than 65 billion barrels of Venezuela’s oil reserves, with licences or joint ventures planned for 17 fields and potential investor guarantees from the Office of Strategic Capital to lure funding. While the aim is to restore confidence in Venezuela’s oil sector, analysts warn the deal raises questions about its long-term legitimacy, the possibility of future renegotiation, and the political risks for investors, as major oil companies remain cautious and no upfront funding is provided.