Pentagon Invests Up to 35% Stake in Venezuelan Oil Firm
The U.S. government has entered into an oil production deal with Venezuela under President Donald Trump's administration, which is being led by the Pentagon's Office of Strategic Capital.
The office reports to Deputy Defense Secretary Stephen A. Feinberg and has seen its initial $1 billion loan authority balloon to $200 billion due to a boost from Trump's major domestic policy legislation passed in July 2025.
Under the deal, the Pentagon will have the option to take up to a 35% stake in North American Blue Energy Partners, a private oil producer founded by Alejandro Betancourt López. This would be in the form of warrants, which give the government the right to buy shares at a predetermined price.
The value of these warrants can fluctuate based on the company's performance, and they are known as penny warrants because they can often be converted into shares for just 1 cent.