WASHINGTON – Democratic Congressman Raja Krishnamoorthi is demanding greater transparency from President Donald Trump over the administration’s sweeping oil agreement involving Venezuela, asking whether Trump, members of his family, political allies, major donors or business associates could financially benefit from the deal.
The central claim in the information circulating about Krishnamoorthi’s intervention is accurate. On September 4, the Illinois Democrat formally sent Trump a series of questions and requested answers by September 14. Krishnamoorthi is a senior member of both the House Committee on Oversight and Government Reform and the House Permanent Select Committee on Intelligence.
The controversy centers on an extraordinary agreement involving North American Blue Energy Partners (NABEP), a private oil company controlled by Venezuelan businessman Alejandro Betancourt. The arrangement gives the U.S. government rights to a 35 percent interest in NABEP and preferential access to part of the company's Venezuelan oil production.
The deal covers 17 Venezuelan oil projects with estimated proven reserves of approximately 65 billion barrels. NABEP has said it plans nearly $100 billion in investments aimed at expanding Venezuela's oil and gas production and eventually raising its output above one million barrels per day.
However, one detail in the original claim requires clarification. The U.S. government has not simply purchased an ordinary 35 percent shareholding in NABEP. A U.S. official said the Pentagon's Office of Strategic Capital structured the position through so-called “penny warrants,” which provide the government rights to a 35 percent stake while protecting that position from dilution as the company raises capital. The arrangement also entitles the U.S. to economic benefits associated with the stake.
Krishnamoorthi said the limited information released by the Trump administration, questions surrounding the legality of the agreement and conflicting statements from Venezuela have created a need for greater scrutiny before substantial U.S. government resources are committed.
Among the questions sent to Trump, the congressman wants to know whether the president or any member of his immediate family has a direct or indirect financial interest in companies involved in the agreement or in businesses connected with developing, financing, refining, transporting or selling Venezuelan oil.
He is also asking whether current or former administration officials, campaign officials, major political donors or Trump business associates have financial interests in entities participating in the agreement.
Another key issue is taxpayer exposure. Krishnamoorthi has asked the White House to identify which U.S. government agencies, funds, financing mechanisms, guarantees, insurance programs or other taxpayer-supported resources could be used to support the Venezuela oil arrangement. He also wants details about ethics reviews and conflict-of-interest safeguards established by the administration.
Particular attention is being directed toward Betancourt. Reuters reported that the Venezuelan businessman had previously been investigated by U.S. authorities in connection with alleged money laundering involving funds allegedly embezzled from state oil company PDVSA. Betancourt has not been charged in the United States and has denied wrongdoing. His lawyer said allegations involving him have been examined in multiple jurisdictions without charges being brought.
Krishnamoorthi's letter also raises questions about businessman Harry Sargeant III, a Republican donor with connections to Trump who previously held a minority interest in NABEP. According to the congressman's office, Sargeant recently agreed to sell the company through which he held that stake to an unidentified buyer for $300 million.
The Trump administration has defended the oil arrangement. The White House has said it will come at “zero cost” to the United States, while Energy Secretary Chris Wright said Washington negotiated the agreement carefully and will maintain strict control over financial flows connected with the deal.
Under the broader agreement, Venezuela has granted NABEP 100-year rights over 17 oil projects. The United States also has preferential rights to purchase 20 percent of NABEP's production at cost and additional rights concerning the remainder of the company's output.
The arrangement has attracted attention from lawmakers beyond Krishnamoorthi. Republican House Intelligence Committee Chairman Rick Crawford has said Congress needs more details, while Democratic Senator Jack Reed has questioned the legal authority for involving the Pentagon in a private Venezuelan oil venture.
Krishnamoorthi has given Trump until September 14 to respond, arguing that Americans should know whether individuals with close political or business connections to the president stand to benefit before U.S. government resources are committed to one of the largest and most unusual energy arrangements between Washington and Caracas in decades.