US structured Venezuela oil position to protect it from dilution, official says
The structure lets Washington keep dividends and a 35% value share while shielding the stake from dilution as the project raises capital.
- On Thursday, the Pentagon protected its 35% stake in a Venezuelan oil venture using "penny warrants" in North American Blue Energy Partners , ensuring the U.S. position remains secure against future capital raises.
- Controlled by Venezuelan businessman Alejandro Betancourt, NABEP received 100-year rights to 17 oilfields holding an estimated 65 billion barrels of reserves as part of the recent Washington-Caracas deal.
- Under the arrangement, 20% of warrants can be purchased at production-cost prices rather than market rates, while the U.S. retains dividends before exercising the warrants.
- Energy Secretary Chris Wright said this week Venezuela's oil output, currently near 1.1 million to 1.2 million barrels daily, could double as separate deals with Chevron, Eni, ONGC, GeoPark, and GE Vernova take effect.
- Lawmakers have demanded greater transparency on Cerberus-affiliated contracts, requiring former Cerberus Capital Management staff to recuse from such transactions, with Commerce Secretary Howard Lutnick reviewing all approvals.
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Contents: The Trump administration has taken an incredible step in the energy sector, entering directly into the oil industry through a huge agreement in Venezuela. Following this understanding, the Pentagon receives free 35% of the North American Blue Energy Partners (NABEP), an entity that has obtained the right to operate for a period of 100 years for 17 oil fields [...] Post Unprecedented decision in Washington: The US will control 65 billio…
News of the Day and the Hour Latest News of today The U.S. government structured its 35% share in the oil agreement with Venezuela through buying options (warrants) that protect the participation of Venezuela's oil... The U.S. news structured its oil position in Venezuela to protect it from dilution was first published in News of the Day and the Hour Latest News of today
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