NABEP, controversial Venezuelan businessman Alejandro Betancourt’s company, raises concerns among Chevron and other oil producers in Venezuela

The expansion of North American Blue Energy Partners (NABEP) in Venezuela is raising concerns among other major oil companies because of the company’s ties to the U.S. government and the terms of the agreement that gave it access to 17 oil fields in the country, according to The Wall Street Journal. The company is led by Venezuelan businessman Alejandro Betancourt, who has been investigated in Spain and Switzerland in connection with alleged money laundering involving funds that were allegedly diverted from PDVSA, Venezuela’s state-owned oil company.

According to the newspaper, NABEP is moving drilling equipment and heavy machinery from the United States to begin developing the fields covered by the agreement reached with Washington and Venezuelan authorities. The company plans to invest nearly $100 billion and increase its production to more than 1 million barrels per day.

“NABEP is increasing oil production for the Western Hemisphere, as promised. We only compete against ourselves,” a company spokesperson said in a statement.

The company has already prepared 60 drilling rigs, 30 steam boilers and 70 units of heavy machinery to expand its operations. Two of the drilling rigs are scheduled to depart from Houston for Venezuela on Monday aboard the cargo ship BBC Washington, on a six-day voyage, according to the U.S. newspaper.

The plan stemmed from an agreement reached in August between NABEP, the U.S. government and Venezuelan authorities to develop 17 oil fields in Venezuela. As part of the agreement, NABEP obtained rights to operate those fields for 100 years, while Washington, D.C., secured a potential stake in the company and rights to a portion of its production.

In turn, the U.S. War Department has the option to acquire 35% of NABEP's parent company.

The agreement has also raised questions about how the assets were awarded. According to Reuters, the concessions covering the 17 fields were awarded without a competitive process.

Against this backdrop, The Wall Street Journal reported growing concern within the industry about having to compete in Venezuela with a company that has a direct tie to the U.S. government.

"Meanwhile, since the deal was announced last month, executives at Chevron, ExxonMobil and ConocoPhillips have privately expressed frustration to others in the industry about the prospect of competing against a rival with ties to the U.S. government. The situation, which came as a surprise to the industry, could undermine the historically competitive nature of the oil industry, people close to the companies said," reported the WSJ.