US Seeks 35% Stake in Venezuelan Oil Company via Penny Warrants

The US government plans to take a 35% passive stake in North American Blue Energy Partners, a Venezuelan-linked oil company. The Pentagon's Office of Strategic Capital would use penny warrants to give Washington equity ownership without significant capital outlay.

According to the Wall Street Journal, the US would also secure preferential rights to buy 20% of the company's production at cost.

The Pentagon denied taking an equity stake in private companies, but this denial may not apply to warrants. The Office of Strategic Capital is legally permitted to provide loans, loan guarantees, and technical assistance, including transaction structuring.

This distinction matters because it allows for a warrant-based structure that could give the US government a durable claim on physical barrels, not just a financial return.