Key facts
- The U.S. government plans to take a 35% passive stake in North American Blue Energy Partners.
- The deal involves preferential rights for the U.S. to purchase 20% of the company's production at cost.
- The investment is planned to be structured through penny warrants by the Pentagon's Office of Strategic Capital.
- President Donald Trump stated the U.S. would control a fifth of Venezuela's oil reserves.
- A Pentagon spokesperson denied the Office of Strategic Capital takes equity stakes in private companies.
The U.S. government is reportedly planning to acquire a 35% passive stake in North American Blue Energy Partners, an oil venture led by Venezuelan businessman Alejandro Betancourt. The Wall Street Journal cited sources involved in the deal, indicating the U.S. would also secure preferential rights to purchase 20% of the company's production at cost.
The Pentagon's Office of Strategic Capital is expected to structure this investment through penny warrants, which would grant the U.S. equity ownership without a significant capital outlay. This development follows President Donald Trump's recent statement that the U.S. would gain control of a fifth of Venezuela's vast oil reserves through a private business partnership.
However, a Pentagon spokesperson, Sean Parnell, stated that the Office of Strategic Capital does not take equity stakes in private companies and is limited to providing capital assistance through loans, guarantees, or technical assistance. Neither the White House nor North American Blue Energy Partners immediately responded to requests for comment.