Corporate Firewall: The oil deal is designed to prevent future U.S. presidents and Venezuelan leaders from changing or dismantling the enterprise.

Investors: Some of the Trump administration’s partners could remain anonymous, hidden behind a parent company based in Barbados.

The Long Run: It could be many years before the company produces enough oil to be a statistically significant share for the United States. These highlights were written by the reporters and editors who worked on this story.

In late August, President Donald Trump announced what he called the “biggest oil deal in world history.”Since then, the full text of the accord — which grants the U.S. sweeping access to Venezuela’s oil reserves — has been one of the most sought-after secrets in Washington, D.C.

ProPublica has reviewed a copy of the 18-page strategic partnership agreement signed for the United States by Secretary of State Marco Rubio and Defense Secretary Pete Hegseth. The document reveals carefully constructed terms that favor U.S. interests at every turn and cements the power of a small group of people handpicked by the Trump administration to govern and profit from the deal. The role of the Venezuelan government and the potential benefits to its people are largely absent from the text.

One of the most criticized aspects of Trump’s announcement has been his choice of a partner: Alejandro Betancourt, a globe-trotting Venezuelan oligarch who has faced money-laundering investigations in three countries.

The Trump administration is taking a 35% stake in Betancourt’s firm, North American Blue Energy Partners, by acquiring shares in a Barbados-registered parent company. The deal document provides little information about the owners and investors behind the parent company, who could receive enormous wealth from the arrangement.

The agreement also safeguards Betancourt’s position as chief executive of NABEP and says the U.S. government will work with the parent company to appoint a powerful seven-member board to govern the venture for an initial 15-year term. Those aspects of the deal, according to people with knowledge of how it came together, were designed to prevent future U.S. and Venezuelan leaders from dismantling the enterprise.

Orlando Alvarado, a name not disclosed by the Trump administration as a party to the accord, signed the agreement on behalf of the parent company, alongside Betancourt, Hegseth and Rubio. Alvarado has held senior roles in multiple Betancourt businesses, including as chief financial officer of an energy firm that became embroiled in scandals a decade ago. According to the Miami Herald, federal prosecutors identified Alvarado as an unindicted co-conspirator in a scheme to embezzle money from Venezuela’s national oil company.

NABEP spokesperson Terry Wade said that “neither Mr. Betancourt nor Mr. Alvarado has ever been charged with any crime in any country, and any claims against them are baseless.”

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Cate Brown I’m interested in talking to people who understand how members of the Trump administration, or their family members, are doing business, at home or abroad.

Key aspects of the plan differ from the Trump administration’s public pronouncements. Trump has said the deal will secure America’s energy dominance for the next century. But the text indicates that U.S. purchasing rights expire in half that time and that the underlying operating rights appear to run afoul of Venezuelan laws limiting oil concessions to 25 years.

The agreement does ensure the United States a deep discount from fair-market value on 20% of NABEP’s oil, as Trump has said. It does not, however, explicitly guarantee that Betancourt’s company is obligated to pay the estimated $200 billion in royalties and tax payments to Venezuela that the White House has said would benefit the country.

There are also significant caveats related to Trump’s central selling point to Americans — that the deal will bring a gusher of low-cost oil imports.

The agreement gives the U.S. the right to purchase 20% of NABEP’s oil at a discounted rate of $30 a barrel, or less than a third of what oil has sold for in recent months, according to one of three supporting documents reviewed by ProPublica.

But this fee does not account for the cost of getting Venezuela’s oil out of the country. Much of Venezuela’s raw crude is so thick that it won’t flow through pipelines unless it is first blended with 20% or more of oil thinner products. Under the deal, the potentially significant cost of importing millions of barrels of those blending materials is not included in the price.

The White House, the State Department, the Pentagon and the energy company NABEP all defended the agreement, saying in statements that their new public-private venture will provide meaningful and lasting economic benefits to both countries that cannot be captured in a legal document.

“This historic deal marks a major step toward stabilizing Venezuela’s economy after years of hyperinflation and almost no new investment, while more than doubling the United States’ oil reserves,” said White House spokesperson Taylor Rogers.

Wade emphasized that NABEP was chosen because of its track record of expanding oil production in Venezuela in recent years and that the agreement was between the company and the U.S. government, not Venezuela.

“Thanks in large part to the agreement,” Wade said, “there is a surge in confidence about the future of Venezuela’s oil industry and, as a direct result, substantial new investments are flowing into the country.”

He added that much of NABEP’s oil comes from fields that require little or no blending materials and that blending costs would not meaningfully impact the price of production. “Our barrel economics are strong.”The newly revealed details of the agreement are nonetheless likely to raise more questions about whether the unorthodox marriage of the United States and a foreign energy baron can bring lasting benefits to either country — and which private parties might benefit along the way. Trump’s oil deal is likely to face scrutiny in both the United States and Venezuela, especially if Democrats win one or both chambers in the midterm elections, according to former U.S. diplomats and congressional staff.

“Question number one in a new U.S. Congress will be: Why Betancourt?” said former Ambassador James Story, who served as the top U.S. diplomat in Caracas from 2018 to 2023, in an interview. “Why did he get this deal? And was he involved in criminality? It seems reasonable to have a congressional hearing about those questions.”In public comments, Delcy Rodríguez, who won the backing of the Trump administration to serve as Venezuela’s interim president, praised the accord as “historic.”She has asserted that Venezuela will retain sovereignty over its natural resources and defended the choice of Betancourt.

People with knowledge of the Trump administration’s behind-the-scenes decision-making and negotiations with Betancourt spoke to ProPublica on condition of anonymity because they were either not authorized to do so or were fearful of retribution.

One reason that the precise terms of the deal have remained hidden until now is that the signed agreement is marked as a “sensitive” government document. That classification is commonly used to shield a variety of federal records from public release, including those containing personnel information, details about ongoing law enforcement operations and matters protected by attorney-client privilege. The document also contains a confidentiality clause barring Betancourt’s company from disclosing the “existence and terms” of the U.S. government agreement.

One person familiar with the deliberations said that people close to the Trump administration seemed keen to partner with Betancourt’s company because of the privacy and flexibility it offered. That appeared to give NABEP an advantage over publicly traded oil companies, which would be obligated to shareholder reporting requirements. “For example,” the person said, “Chevron couldn’t give 35% of their shares to the Pentagon.”

The Deal The oil deal is sensitive partly because of likely resistance in Venezuela, where critics have already described it as a U.S. takeover of the country’s precious natural resources.

A ProPublica analysis shows that its terms favor American interests at nearly every turn and try to enshrine the Trump administration’s imprint indefinitely. The document states that a majority of the seven-member board must be U.S. citizens at all times, and the U.S. government can appoint one “non-voting observer” to join the group. Betancourt, who will serve as the chief executive, is the only board member named by the agreement. The initial board will establish the process for choosing new members.

“Throughout the evolution of the deal, it was clear that the governing structure was intended to ensure maximum control by the people making the deal and to insulate them from future administrations seeking to reverse the agreement or call it into question,” a person familiar with the negotiations said. There is no requirement for any Venezuelan government participation in the board.

The agreement also offers long-lasting protections for Betancourt and unnamed investors. It requires a supermajority vote of five to oust Betancourt as CEO, change the board composition or execute any transactions with a shareholder that isn’t the U.S. government, an indirect equity holder, director, affiliate or “immediate family members.”The board will determine compensation for Betancourt in his role as chief executive, the document says. As structured, the deal does not appear to require any public disclosures about pay or distribution of shares to executives.

The agreement does not say which shareholders, affiliates or family members have been approved to transact with Betancourt’s company. Under Barbados corporate law, there is almost nothing that can force those interests to be revealed publicly.

The agreement does, however, require the company to maintain “anti-money laundering controls,” submit to external audits and inspections of its records by the U.S. government, and provide the U.S. government with an annual budget and quarterly unaudited financial statements. It is unclear if these reports will ever be made public.

It could be some time before the company produces enough oil to fulfill a significant share of U.S. demand. Betancourt’s company currently produces about 200,000 barrels per day — or about as much over the course of a year as the United States uses in three days.

NABEP aims to increase its production to 500,000 barrels per day by the end of 2028, according to recent reports.

In addition to securing a discount on 20% of NABEP’s oil, Washington also has “first priority” to purchase all of the company’s remaining oil production for the next 50 years, including an irrevocable right to buy its entire oil supply in the event the U.S. declares a national emergency.

The U.S. also receives a “most favored nation” status that requires Betancourt’s firm to disclose any other business agreements it signs, and, if they are favorable, to grant the Washington matching terms.

One person who reviewed parts of the contract was surprised at the tangible benefits for the U.S. compared with the lack of binding commitments to Venezuela: “I gave you 20% of my production at ‘cost plus,’ fine. I gave you all of my production if there’s a national emergency, OK. … So what do I get in exchange?”A U.S. official said Rodriguez had granted NABEP 100-year oil concessions to operate there, although this figure is not referenced in the accord and appears to contradict Venezuelan law.

In the event of a dispute, Venezuela can’t challenge the deal in its own courts. The agreement dictates that any conflict between the company and the United States must be settled under U.S. law, not Venezuela’s. The two sides even spelled out that any civil case or arbitration must be argued before the United States District Court for the Northern District of Texas, where Trump’s Justice Department has turned, time and again, for favorable rulings.

Where U.S. law does not apply, Texas state law governs, the agreement states.

A Pentagon office has been tasked with someday executing the financial transaction to capitalize on the U.S. government’s 35% share in the venture. The document shows that the U.S. will pay nothing upfront but plans to acquire its stake in Betancourt’s company by paying $0.01 per warrant share. Those terms are set to expire on the 75th anniversary of the closing date.

In a White House statement last month, Trump touted those shares as potentially worth “hundreds of billions,” plus dividends. But Democrats on the Senate Armed Services Committee said they believe the Pentagon office does not have the legal authority to execute an agreement with a foreign entity operating in a country under U.S. sanctions.

Pentagon press secretary Kingsley Wilson said that the Defense Department conducts “extensive due diligence” before extending capital assistance. Wilson declined to comment on any of the legal considerations or further technical aspects of the deal “to protect the integrity of the process.”Several other detailed aspects of how the company will operate are currently under negotiation among the Trump administration, Betancourt and the parent company, the partnership documents show. The agreement repeatedly cites a set of “Implementation Documents” that will finalize the U.S. ownership stake and the rights of unnamed investors.

The full force of the deal will not take effect until both parties have complied with its closing conditions, which the agreement indicates could happen within months.

Last month, Senate Democrats blasted what was known of the oil accord and demanded details in a letter to Rubio, Hegseth and Secretary of Energy Chris Wright.

“It is unclear why the American public should support this attempt to entangle the United States with a relatively unknown foreign oil company that lacks the capacity or credibility to develop oil fields of the magnitude described and whose leadership has faced international criminal investigations,” four ranking senators said in the letter.

They asserted that most of the “oil fields are nowhere near ready for production” and that it could “take up to a decade before global oil markets are meaningfully impacted and the American people see any tangible benefit.”

A Willing Partner Almost immediately after U.S. special operations forces seized President Nicolás Maduro in January and airlifted him out of Venezuela, Trump left little doubt that his larger goal was to restore American access to Venezuela’s oil reserves two decades after most U.S. firms had been ejected from the country.

By early spring, an obscure cast of energy officials, lawyers and lobbyists had started to craft plans to deliver on Trump’s America First energy agenda. One person familiar with the deliberations said that U.S. officials had considered backing an idea for publicly held American oil companies like Chevron, Exxon and Conoco to carve up and rehabilitate Venezuela’s aging oil sector. Another potential route went through Betancourt’s company, which is the second largest private oil firm operating in Venezuela. Working with the Venezuelan state company, Petróleos de Venezuela, SA, was never really an option due to its underlying debt and history of corruption, the person said.

The option of turning to large multinational oil companies quickly stalled. In some cases, oil executives balked at jumping back into the complexity of the Venezuelan market; in others, firms struggled to get more than “lip service” meetings in Washington and Caracas, according to media reports and people familiar with the deal.

“NABEP was given priority,” one person said. “Exxon, Conoco and the others were treated as second class.”Betancourt’s star was rising in the Trump administration. He had served as an interlocutor for Washington with the Maduro government and had ties to some leaders of the Venezuelan opposition, according to current and former U.S. officials. He had also provided information that helped the U.S. forces seize Venezuelan oil tankers and that aided strategy and planning before the capture of Maduro, Reuters reported.

In addition, Betancourt had developed a good relationship with Rodríguez, whom Trump had backed as the country’s interim president. And Betancourt had done so despite the fact that her influential brother, National Assembly President Jorge Rodríguez, had accused him of corruption in a televised speech in 2020, according to former U.S. officials and press reports.

U.S. officials also saw practical reasons to partner with Betancourt, several people said. He and his then-business partner in the U.S., Harry Sargeant, a Trump supporter, appeared to be a rare success story in a battered industry, operating some of the only active oil fields in the country.

“The main thing I found promising is that the fields are producing in Venezuela,” said a former State Department official who analyzed the company’s activities. “I think it’s particularly important that you buy into fields that are producing. … If your policy goal is to raise production quickly, this makes sense.”But partnering with Betancourt posed major challenges.

For starters, the 46-year-old billionaire was confined to house arrest on his 300-acre Oxfordshire estate in England, fighting off a Swiss extradition request tied to an international money-laundering probe. Betancourt could fly to his $46 million London residence by private helicopter — but his Venezuelan and Italian passports were locked down, and British authorities had barred him from driving on public roads, according to media reports about the special bail arrangement.

Betancourt’s legal problems stemmed from his role in troubled Venezuelan energy projects during the corrupt rule of former President Hugo Chávez. Several of Betancourt’s known or alleged associates were charged or convicted in a major U.S. money-laundering investigation known as Operation Money Flight. Betancourt surfaced as a suspect in the U.S. case and is still under investigation for suspected money laundering by authorities in Spain, according to former U.S. and European officials and press reports.

The most popular leader of the Venezuelan opposition in exile, María Corina Machado, recently described Betancourt as having been involved in “obscene corruption” that caused great suffering for the Venezuelan people, according to a recent New York Times interview.

Betancourt has not been charged in any country. His lawyer has maintained his client’s innocence, saying Betancourt has been unfairly maligned because people associate him with a group of wealthy young Venezuelans, some of whom have been accused of wrongdoing, according to press reports.

Many Venezuelans see Betancourt as a “totemic, emblematic, corrupt figure,” said Brian Naranjo, a former senior U.S. diplomat in Venezuela, in an interview.

“He is not really an oil man,” Naranjo said. “The talent he brings is that he’s a new person in a long line of Venezuelan businesspeople who deal in influence. Their big lever is connections and influence. It is know-who, not know-how.”In a recent interview with Spanish language media, Rubio defended Betancourt, praising his oil company’s work in Venezuela and his support for factions of the Venezuelan opposition in exile.

Rubio downplayed the legal scrutiny Betancourt has faced, saying a review conducted with U.S. law enforcement agencies indicated “there were no investigations of him in our system.”It remains unclear exactly how Betancourt shed the travel restrictions imposed by European authorities. But The Washington Post reported that senior Trump administration officials, including Deputy Secretary of State Christopher Landau, former Attorney General Pam Bondi and then-Deputy Attorney General Todd Blanche, petitioned their foreign counterparts to allow Betancourt to travel freely and to close their investigations into him and his business ventures.

The Trump administration’s next hurdle to working with Betancourt was figuring out how to legally invest. The government’s $200 billion investment agency, the International Development Finance Corporation, was created to do just that but is currently barred by U.S. law from operating in Venezuela.

At different points through the summer, aides to Office of Management and Budget Director Russell Vought stepped in, pressing Defense and State department officials to consider alternate financing paths, according to one person familiar with the deal’s progression.

By July, the Pentagon’s Office of Strategic Capital, headed by David Lorch, emerged as a potential solution.

Lorch, who had moved to the Pentagon from Deputy Defense Secretary Steve Feinberg’s private equity firm, Cerberus Capital, quickly embraced the idea, according to people familiar with the deal. Lorch and other Pentagon and State Department officials flew to Caracas in the final days of that month and agreed in principle to a deal. The details would be hammered out back in Washington, the people said. A Pentagon spokesperson said Lorch declined to comment.

On Aug. 5, Betancourt strode into a conference room behind the art deco facade of the old Greyhound Bus Terminal in downtown Washington that houses an auxiliary Pentagon office. The assembled Defense Department officials gave the Venezuelan billionaire the red carpet treatment, lining up to shake his hand, according to people familiar with the meeting. But some in the room were stunned to discover that the U.S. government was preparing to do business with Betancourt, the people familiar with the meeting said.

Betancourt was accompanied by Jacob Hirshman, the chief executive and co-founder of Erebor Bank, the first new bank chartered after Trump returned to office, according to people familiar with the meeting. The bank, backed by Trump supporters and investors Peter Thiel and Palmer Luckey, has vowed to reconnect Venezuela to the world economy. Hirshman did not respond to a request for comment.

Lorch told the group, which included dozens of former Wall Street associates he’d hired into the office, that the alliance with Betancourt was a major “opportunity” to fulfill one of the Trump administration’s top goals, securing benefits to the United States and Venezuela for decades to come. The meeting touched off a month of around-the-clock calls and video conferences.

People familiar with the deal’s progression said Lorch soon became involved in structuring key aspects of the deal beyond its financing, including how the board would sit for 15 years and choose its successors. One said he put an explicit premium on setting up the venture in a way that it could not be undone by Trump’s successor.

The months of work on the deal burst into public view on Aug. 28 with a Trump announcement on Truth Social.

“The United States of America has just entered into an Agreement with the Country of Venezuela on, THE BIGGEST OIL DEAL IN WORLD HISTORY!”

Trump posted on a Friday night. Two days later, Hegseth, Rubio, Betancourt and Alvarado signed the deal.