The US government has structured its 35% stake in a Venezuelan oil venture to protect it from dilution as billions of dollars are raised to develop the fields, Reuters has reported.
The Pentagon holds “penny warrants” in North American Blue Energy Partners (NABEP), giving Washington the right, but not the obligation, to acquire shares later at a nominal exercise price, according to a US official cited by Reuters. ([investing.com](https://www.investing.com/news/economy-news/us-shields-35-stake-in-venezuela-oil-venture-from-dilution-reuters-reports-4890149))
The arrangement is intended to preserve the US government’s economic interest while NABEP secures private capital for its operations. Washington will also be entitled to receive dividends before formally exercising the warrants, allowing it to benefit financially as the project is developed.
NABEP is controlled by Venezuelan businessman Alejandro Betancourt. Under the agreement between Washington and Caracas, the company has received 100-year concessions covering 17 oilfields with estimated reserves of about 65 billion barrels. The White House said the concessions form part of a wider plan to rebuild Venezuela’s oil industry. ([whitehouse.gov](https://www.whitehouse.gov/fact-sheets/2026/08/fact-sheet-president-donald-j-trump-announces-historic-oil-agreement-to-secure-american-energy-dominance-and-drive-venezuelas-economic-recovery/?utm_source=openai))
The concessions were awarded without a competitive bidding process, adding to scrutiny of the deal and Mr Betancourt’s role in it. His previous business dealings have been investigated by US and European authorities, although he has not been charged and has denied wrongdoing. ([investing.com](https://www.investing.com/news/economy-news/us-shields-35-stake-in-venezuela-oil-venture-from-dilution-reuters-reports-4890149))
As well as its equity position, the Pentagon holds a separate right of first offer over NABEP’s production. The US government can purchase 20% of the oil produced at a price based on production costs, while the remaining output would be available at market rates.
The White House has said the US government will also have the power to veto the appointment of any NABEP director, while a majority of the company’s board must be US citizens. It said the arrangement would allow NABEP to raise American private capital without requiring direct taxpayer funding. ([whitehouse.gov](https://www.whitehouse.gov/fact-sheets/2026/08/fact-sheet-president-donald-j-trump-announces-historic-oil-agreement-to-secure-american-energy-dominance-and-drive-venezuelas-economic-recovery/?utm_source=openai))
US officials have presented the venture as a central part of efforts to revive Venezuela’s struggling energy sector. The country is currently producing about 1.1 million to 1.2 million barrels of oil a day, well below its output in the late 1990s.
Energy Secretary Chris Wright said this week that Venezuelan production could more than double over several years as separate agreements involving Chevron, Eni, ONGC, GeoPark and GE Vernova come into effect. ([investing.com](https://www.investing.com/news/economy-news/us-shields-35-stake-in-venezuela-oil-venture-from-dilution-reuters-reports-4890149))
