Key facts
- The U.S. government holds a 35% stake in a Venezuelan oil venture structured as warrants.
- This structure protects the U.S. stake from dilution as the venture raises capital.
- The U.S. is entitled to dividends from the project before exercising the warrants.
- The venture, North American Blue Energy Partners (NABEP), was granted 100-year rights to 17 oilfields.
- NABEP is controlled by Venezuelan businessman Alejandro Betancourt.
- The U.S. also has a right of first offer to purchase NABEP's oil output.
The U.S. government has structured its 35% stake in a Venezuelan oil venture, North American Blue Energy Partners (NABEP), using "penny warrants" to protect its ownership from dilution. A U.S. official explained that this structure allows Washington to maintain its equity value as NABEP raises capital for project development, while still entitling the U.S. to dividends.
NABEP, controlled by Venezuelan businessman Alejandro Betancourt, received 100-year rights to 17 oilfields with an estimated 65 billion barrels of reserves. The deal, announced by President Donald Trump, has drawn scrutiny due to Betancourt's past business dealings, which have been investigated by U.S. and European authorities, though he has never been charged and denies wrongdoing.
The official further confirmed that the Pentagon holds a separate right of first offer to purchase NABEP's oil output, with 20% eligible at production cost and the remainder at market rates. This arrangement is part of broader U.S. efforts to revive Venezuela's oil sector. Venezuela's current oil output is around 1.1 to 1.2 million barrels per day, with potential to more than double.