US structured Venezuela oil position to protect it from dilution, official says
The structure lets Washington keep dividends and a 35% value share while shielding the stake from dilution as the project raises capital.
- On Thursday, U.S. officials confirmed the Pentagon protected its 35% stake in North American Blue Energy Partners using "penny warrants," ensuring the government's position remains secure against future capital raises.
- Controlled by Venezuelan businessman Alejandro Betancourt, NABEP received 100-year rights to 17 oilfields holding an estimated 65 billion barrels of reserves as part of the recent deal between Washington and Caracas.
- Under the deal, 20% of warrants can be purchased at production-cost pricing rather than market rates, while the U.S. retains dividends before exercising the warrants.
- Energy Secretary Chris Wright said this week Venezuela's oil output, currently near 1.1 million to 1.2 million barrels a day, could double in coming years as deals with Chevron, Eni, ONGC, GeoPark, and GE Vernova take effect.
- Lawmakers have demanded greater transparency on Cerberus-affiliated contracts, requiring officials who previously worked at Cerberus Capital Management to recuse themselves from such transactions, which now require review by Commerce Secretary Howard Lutnick.
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One of the American oil giants expands its operations in Venezuela. The announcement comes just a few days after President Donald Trump announced an agreement for the development of the country's oil reserves.
Venezuela sits on the planet’s largest proven oil reserves, and Donald Trump’s administration has gained much more than access to a few more cargoes of crude. The new Washington-Caracas deal gives the US a stake in the company that will exploit 17 fields, a say in its management and privileged access to production for a century. The White House talks about energy security, cheaper oil and Venezuela’s economic recovery. Critics see an unprecedent…
US secures 35% Venezuela oil position with anti-dilution warrants
WASHINGTON, D.C.: The U.S. government has structured its 35 percent stake in a Venezuelan oil venture through warrants designed to prevent dilution as the project raises fresh capital, a U.S. official said. The arrangement, announced last week by President Donald Trump, gives the Pentagon "penny warrants" in North American Blue Energy Partners, or NABEP, allowing it to buy equity later at a token price without b
Contents: The Trump administration has taken an incredible step in the energy sector, entering directly into the oil industry through a huge agreement in Venezuela. Following this understanding, the Pentagon receives free 35% of the North American Blue Energy Partners (NABEP), an entity that has obtained the right to operate for a period of 100 years for 17 oil fields [...] Post Unprecedented decision in Washington: The US will control 65 billio…
News of the Day and the Hour Latest News of today The U.S. government structured its 35% share in the oil agreement with Venezuela through buying options (warrants) that protect the participation of Venezuela's oil... The U.S. news structured its oil position in Venezuela to protect it from dilution was first published in News of the Day and the Hour Latest News of today
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