US Secures 35% Stake in Venezuelan Oil Venture through Anti-Dilution Warrants

The US government has secured a 35% stake in Venezuela's North American Blue Energy Partners (NABEP), a company granted 100-year rights to 17 oilfields containing an estimated 65 billion barrels of reserves. The arrangement, announced last week by President Donald Trump, uses 'penny warrants' that allow the Pentagon to buy equity later at a token price without being required to do so immediately.

The official said the warrant structure was intended to preserve US ownership levels while NABEP raises money to fund the project. This anti-dilution mechanism ensures the US government will realize 35% of the full value of the project once it reaches mature production, as opposed to being diluted in the interim.

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.