Anabelle Colaco
06 Sep 2026

WASHINGTON, D.C.: The U.S. government has structured its 35 percent stake in a Venezuelan oil venture through warrants designed to prevent dilution as the project raises fresh capital, a U.S. official said.

The arrangement, announced last week by President Donald Trump, gives the Pentagon "penny warrants" in North American Blue Energy Partners, or NABEP, allowing it to buy equity later at a token price without being required to do so immediately.

NABEP, controlled by Venezuelan businessman Alejandro Betancourt, was granted 100-year rights to 17 oilfields containing an estimated 65 billion barrels of reserves under the recent agreement between Washington and Caracas.

The concessions were awarded without a competitive process. The United States has been working to revive Venezuela's oil sector after American forces captured and removed former President Nicolas Maduro from power in January.

The official, speaking on background, said the warrant structure was intended to preserve U.S. ownership levels while NABEP raises money to fund the project.

The warrants act as an anti-dilution mechanism that the U.S. can hold until the project matures, "so that way the U.S. government will realize 35 percent of the full value of the project ... once it reaches mature production, as opposed to being diluted in the interim," the official said.

The official also said the arrangement gives the United States access to dividends before the warrants are exercised.

The structure "gives the United States all the benefits of being an equity holder today while protecting us from dilution while the project is being developed," the official said.

The Pentagon also holds a separate right of first offer to buy NABEP's oil output. Twenty percent can be bought at a price based on the company's production cost, while the remainder would be purchased at market prices.

The deal has faced scrutiny over Betancourt's past business dealings, which U.S. and European authorities have investigated. He has never been charged and has denied wrongdoing.

Other U.S. officials this week defended the arrangement as part of an effort to align Venezuela's energy sector with U.S. interests.

Venezuela's oil production, which peaked above 3 million barrels per day in the late 1990s, is now around 1.1 million to 1.2 million barrels a day. U.S. Energy Secretary Chris Wright said this week output could more than double within a few years as separate agreements involving Chevron, Eni, ONGC, GeoPark and GE Vernova take effect.

Separately, the official said Pentagon employees who previously worked at Cerberus Capital Management must recuse themselves from transactions involving the firm's assets and refer those matters to Commerce Secretary Howard Lutnick for review and approval.

Lawmakers have sought greater transparency over contracts involving Cerberus-affiliated companies and called for a clearer separation between Deputy Defense Secretary Steve Feinberg, a Cerberus founder, and procurement decisions.

Cerberus did not immediately respond to a request for comment.