US officials defend Venezuela oil deal, say agreement part of path to democracy

One of the officials said that U.S. Energy Secretary Chris Wright will travel later today to Venezuela, where Chevron CVX.N will sign a separate agreement to expand its operations in the country on Wednesday.

The official tied the deal to what they called a desire to bring about a "stable, democratic Venezuela." They said the broader effort needed to culminate with elections in the South American country, which are not feasible in the short term.

"The last thing we want to see is a new democratic elected government inherit a country in crisis," the official said, adding that the next phase of political talks between government and opposition leaders regarding a democratic transition in Venezuela will resume in mid-September.

U.S. officials on Tuesday defended Washington's deal to take an equity stake in a venture to operate oilfields in Venezuela and the businessman who will run it, casting the agreement as part of a process that would help the U.S. secure a reliable and stable supply of crude while helping to rebuild a country hollowed out by decades of corruption.

Speaking to reporters, one of the officials said the arrangement that will give the U.S. access to around a fifth of Venezuela's oil reserves is "a geopolitical opportunity to secure fields that primarily had largely been under the influence of Chinese and Russian companies."

Pressed on Alejandro Betancourt, whose North American Blue Energy Partners sits at the center of the deal after Caracas and Washington agreed to a 100-year lease on 17 large oilfields, the official said the businessman had been vetted and that "there are no charges he's facing in the United States for violation of any of our laws."

"I'm not nominating anyone for sainthood here," the official said.