How did the U.S. government structure its 35% stake in the Venezuelan oil venture to prevent dilution?

The U.S. government structured its 35% position as 'penny warrants' in North American Blue Energy Partners (NABEP), giving it the right—but not the obligation—to buy equity at a token price; this mechanism protects the stake from dilution during future capital raises while allowing the U.S. to receive dividends immediately and retain all benefits of equity ownership before exercise.

What special purchasing rights does the Pentagon hold regarding NABEP's oil output?

The Pentagon holds a separate right of first offer to purchase NABEP's oil output: 20% can be bought at a price reflecting the company's production cost, and the remainder at market prices.

US Structured Venezuela Oil Position to Protect It from Dilution, Official Says

Sep 4, 2026

A U.S. official stated the government structured its 35% stake in a Venezuelan oil venture using warrants to prevent dilution. The deal involves Pentagon oversight and aims to revive the country's oil sector alongside agreements with Chevron and Eni.

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