Report Alleges Political Ties in Venezuela Oil Deal
A Reuters investigation has uncovered allegations that US Vice President JD Vance's connections to a senior Vitol trader, John Addison, were instrumental in securing a lucrative contract for the commodities giant to market Venezuelan oil. This deal reportedly materialized following a US military operation that led to the removal of President Nicolas Maduro in January.
Addison, a senior gasoline trader at Vitol and an early financial supporter of Vance, reportedly discussed Venezuela with the Vice President during a visit to Montana's exclusive Yellowstone Club on December 27. Flight records cited by Reuters indicated Addison's private jet and Vance's aircraft were at Bozeman Yellowstone International Airport on the same day. However, both Addison and Vance's office have denied that any such meeting took place.
A person familiar with the matter told Reuters that Vance had asked how quickly Venezuelan crude could be sold if Washington gained control of the country's oil supplies.
How Vitol Secured the Contract
Just two days after Maduro's removal, on January 5, US Energy Secretary Chris Wright contacted Addison to discuss the marketing of Venezuelan crude. Addison stated he initially expected a market update call, but the conversation shifted. He acknowledged that Vance had previously described him to Wright as trustworthy, a recommendation a US official confirmed occurred at least a year prior.
Within days of this call, Vitol, alongside rival firm Trafigura, received special licenses to sell Venezuelan oil. The US Energy Department defended its decision, asserting that Vitol was selected due to its standing as the world's largest energy and commodities trader. The department explicitly denied that Vance and Wright had discussed Venezuelan oil sales.
Potential for Substantial Profits
These contracts have opened significant earning opportunities for the trading firms involved. Energy finance expert Tom Seng estimated that traders could realize profits between $3 and $3.50 per barrel, representing a profit margin of approximately 3.5% to 4%. With US government data indicating Venezuela is set to export over 200 million barrels this year, these contracts could generate hundreds of millions of dollars in profits. However, the companies have not disclosed their individual earnings from these agreements.
Scrutiny Over Political Donations
The allocation of these contracts has drawn scrutiny, particularly concerning political donations. Federal Election Commission records show Addison contributed $300,000 to Vance's 2022 Senate campaign. Furthermore, Addison and his wife donated an additional $7 million to political action committees in 2024, including $5 million specifically to support Donald Trump's presidential campaign.
Democratic lawmakers, such as Representative Robert Garcia, have questioned whether these political connections influenced the contract allocation. Concerns were also raised regarding whether oil traders received advance warning of the US military operation in Venezuela, an allegation both Vitol and Trafigura have denied. The Trump administration, for its part, defended bypassing competitive bidding processes, arguing that swift action was essential to stabilize Venezuela's economy.