The U.S. government plans to take a 35% passive stake in North American Blue Energy Partners, a Venezuelan oil venture led by businessman Alejandro Betancourt, according to The Wall Street Journal. The proposed arrangement would also give the U.S. preferential rights to buy 20% of the company's production at cost.
The U.S. government is planning to acquire a 35% passive stake in North American Blue Energy Partners, an oil venture led by Venezuelan businessman Alejandro Betancourt, The Wall Street Journal reported, citing people involved in negotiations.
Under the proposed arrangement, Washington would also receive preferential rights to purchase 20% of the company's production at cost, potentially giving the United States direct access to a portion of the oil produced by the venture.
The Pentagon's Office of Strategic Capital (OSC) is reportedly expected to structure the investment through so called penny warrants, which could give the U.S. an equity interest without requiring a substantial upfront capital investment, according to the WSJ report cited by Reuters.
Pentagon spokesperson Sean Parnell told Reuters that the Office of Strategic Capital does not take equity stakes in private companies under its statutory authority. He said the office's role is limited to providing capital assistance through loans, loan guarantees or technical assistance, including help with structuring investments.
The White House and North American Blue Energy Partners did not immediately respond to Reuters' requests for comment.
The reported arrangement comes shortly after President Donald Trump said the United States had secured control over a significant portion of Venezuela's oil reserves through partnerships with private companies.
Trump said the arrangement involved more than 65 billion barrels of Venezuela's proven oil reserves, although he provided few details about how the structure would work.
The development is part of a broader U.S. effort to increase involvement in Venezuela's oil industry, which has suffered from years of underinvestment, declining production capacity and political instability.
North American Blue Energy Partners is expected to play a significant role in the effort. The New York Times reported that Betancourt's family controls the company, described as Venezuela's second largest private oil producer.
If implemented, the proposed arrangement would represent an unusual expansion of U.S. government involvement in a foreign oil venture.
For the United States, preferential access to production could strengthen energy security and provide additional supplies of Venezuelan crude. For Venezuela, increased access to foreign capital and technology could help revive an oil industry that requires substantial investment in infrastructure and production.
However, significant uncertainties remain. The proposed U.S. equity structure has not been officially confirmed, and questions remain over the legal authority, financing arrangements and long-term ownership structure.
The deal could also face political scrutiny because of Betancourt's prominent role in Venezuela's energy sector and the broader political sensitivity surrounding U.S. involvement in the country's oil industry.
For investors and energy companies, the development could nevertheless signal a potentially significant opening of Venezuela's oil sector to U.S. capital and private-sector participation.
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