US to take 35% stake in Venezuelan mogul Betancourt's oil venture: Report

The U.S. government plans to take ​a 35% passive stake in ​Venezuelan businessman Alejandro Betancourt's North American Blue ​Energy Partners, the Wall Street Journal reported on Saturday, citing people involved in negotiating the deal.

The U.S. also plans to secure ‌preferential rights ⁠to purchase ⁠20% of the company's production at cost, the WSJ reported.

The ​Pentagon's Office of Strategic Capital plans to structure the investment through ​penny warrants that would yield the U.S. an equity ownership in the business without significant capital investment, the ​WSJ reported.


The report comes only ⁠a day ‌after U.S. President Donald Trump said ​on Friday ​that the U.S. would take control ⁠of a fifth of Venezuela's vast oil reserves.

Trump ​provided few details about the arrangement, saying only ​that the U.S. had secured majority control of more than 65 billion barrels of Venezuela's proven oil reserves through a partnership with private business.

Responding to a Reuters request for comment, chief Pentagon spokesperson ‌Sean Parnell said: "The Office of Strategic Capital (OSC) does not take equity stakes in ​private companies. ​Under its statutory ⁠authority, OSC's role is strictly limited to providing capital assistance in the form of a loan, loan guarantee, or technical ​assistance (including transaction structuring for developing and financing investments)."

The White House and North American Blue Energy Partners did not respond to requests for comments outside regular business hours.