Kathmandu— United States Energy Secretary Chris Wright is set to travel to Venezuela on Tuesday to unveil a controversial oil arrangement. The agreement, which has been approved by Venezuela's National Assembly despite lacking public details, grants the US effective control over a significant portion of Venezuela’s oil reserves, estimated at 65 billion barrels.

Approval and Opposition

The deal was backed by Venezuela’s interim government led by President Delcy Rodriguez and her brother Jorge Rodriguez, who heads the National Assembly. However, some opposition lawmakers abstained from voting and criticized the lack of transparency in the agreement's terms. Lawmaker Luis Emilio Rondon called for the full text to be published, stating that they need to know what is written in the fine print.

Deal Details

The arrangement will give the US access to 65 billion barrels of proven oil reserves in Venezuela. The deal involves a partnership with North American Blue Energy Partners (NABEP), led by Alejandro Betancourt, a former ally of late Venezuelan President Hugo Chavez. The agreement is expected to create a new company where the US Defence Department will hold a 35 percent ownership stake and the State Department can buy 20 percent of the oil produced at cost.

Political Context

The deal comes amid increasing US influence over Venezuela’s government since the January 3 military operation that led to the abduction and imprisonment of former President Nicolas Maduro. The Trump administration has backed Rodriguez as a model of cooperation, despite skepticism from some companies about investing in Venezuela's dilapidated energy sector due to heavy sanctions and mismanagement.

(With inputs from Al Jazeera)

Originally published on abcnews.com.np.