{"text":[[{"start":5.34,"text":"In the aftermath of the January raid to capture Nicolás Maduro, Donald Trump predicted a wave of new investment into Venezuela’s depleted oil sector. It has been slow in coming. After more than a decade of corrupt mismanagement, many existing oil wells are in disrepair and the infrastructure depleted — requiring huge outlays. The oil itself is difficult and expensive to extract."}],[{"start":30.26,"text":"But most of all, the world’s major oil companies are uneasy about the political situation. During the presidencies of Hugo Chávez and Maduro, the industry watched the economy being run into the ground and had some of its assets appropriated. Many executives do not believe that a government run by Delcy Rodríguez, who was Maduro’s vice-president, represents a big enough change to restore confidence."}],[{"start":51.84,"text":"Some deals may be starting to flow. Chevron on Wednesday committed to invest $7bn to more than double its Venezuelan production. But to speed the revival of Venezuela’s oil sector, Trump has two options. One would be to push for early elections that would usher in a democratically elected government. A new president could present a clean break with the past and negotiate major investments on the basis of genuine political legitimacy."}],[{"start":76.66,"text":"A US-backed dialogue on a new election is likely to take some time, however, and Trump wants to be able to show decisive progress to American voters before the midterms. An elected president could also bring complications: the Venezuelan opposition is anything but anti-American, but a new government would still have the authority to plough its own path, rather than do Washington’s bidding."}],[{"start":98.74,"text":"Trump has decided to take another route — through a burst of unorthodox dealmaking. In perhaps the most striking example of the White House’s new brand of state capitalism, the US is going into business with Alejandro Betancourt, one of the most divisive figures in the Venezuelan business world."}],[{"start":114.58,"text":"Under the deal, the US will take a 35 per cent stake in Betancourt’s oil business, North American Blue Energy Partners, which has been given a concession that covers 17 oilfields and around one-fifth of Venezuela’s reserves. Betancourt is already talking to investors about potential deals involving these assets."}],[{"start":132.78,"text":"From the White House’s point of view, the structure has two advantages. Oil companies looking to invest in Venezuela can now go through Betancourt — “a proven operator” as a senior US official described him — rather than the slow-moving state oil company PDVSA."}],[{"start":149.84,"text":"Some companies had been asking for guarantees before returning to Venezuela. The US investment will be held through the Pentagon’s Office of Strategic Capital, which has the resources to provide financial guarantees to investors or their banks."}],[{"start":163.86,"text":"But there are major flaws. While the deal’s full details are not yet public, it faces legal questions in both the US and Venezuela. Democrats in Congress are calling it an abuse of power."}],[{"start":176.34,"text":"Then there is Betancourt himself. The administration says that he has the sharp elbows needed to get things done in Venezuela. But he is also a hate figure for sections of the opposition because he is a leading member of the group who became hugely wealthy under Chávez, in some cases through sweetheart deals. Potential investors are left to ask if this deal will survive political scrutiny in either country — especially if elections bring in a new Venezuelan government."}],[{"start":203.78,"text":"The sort of long-term commitment involved in a major oil investment requires a high level of confidence in the political conditions. In Venezuela’s case, that means new elections that can establish a government with deeper credibility. There is no short-term fix for a crisis of political legitimacy."}],[{"start":221.7,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1788402705_6445.mp3"}