US Government Plans 35% Stake in Venezuelan Mogul's Oil Venture, WSJ Reports

The U.S. government intends to acquire a 35% passive stake in North American Blue Energy Partners, an oil venture controlled by Venezuelan businessman Alejandro Betancourt, The Wall Street Journal reported Saturday, citing people involved in the negotiations. The arrangement would represent a significant and unusual direct government investment into a private energy company.

Details of the Proposed Deal

According to the WSJ report, the deal would be structured by the Pentagon’s Office of Strategic Capital (OSC) and would grant the U.S. government substantial influence over the company's resources. Key terms of the reported agreement include:

• Equity Ownership: A 35% stake acquired through the use of penny warrants, which would provide ownership without a significant upfront capital investment.
• Production Rights: Preferential rights for the U.S. to purchase 20% of the company’s oil production at cost.

This news follows a statement from U.S. President Donald Trump on Friday, in which he claimed the U.S. had secured control of over 65 billion barrels of Venezuela's proven oil reserves—roughly a fifth of the nation's total—through a partnership with a private business.

Pentagon Contradicts Report

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However, the Pentagon has pushed back on the central claim of the report. In a statement to Reuters, chief Pentagon spokesperson Sean Parnell said the OSC's role is legally limited and does not include taking direct ownership in companies.

"The Office of Strategic Capital (OSC) does not take equity stakes in private companies," Parnell stated. He clarified that the OSC's statutory authority is "strictly limited to providing capital assistance in the form of a loan, loan guarantee, or technical assistance."

Market Implications

The conflicting reports create considerable uncertainty for energy markets and investors. A direct U.S. government equity stake in a private oil firm would be a major departure from typical policy, potentially impacting U.S. energy security strategy and its geopolitical stance toward Venezuela. For now, the market awaits official clarification on the nature and structure of any potential government involvement. The White House and North American Blue Energy Partners did not respond to requests for comment.