Daijiworld Media Network - Washington

Washington, Aug 30: The US government is planning to take a 35 per cent passive stake in North American Blue Energy Partners, an energy company linked to Venezuelan businessman Alejandro Betancourt, the Wall Street Journal reported on Saturday, citing people involved in negotiations.

Under the proposed arrangement, the US would also receive preferential rights to purchase 20 per cent of the company’s production at cost, according to the report.

The Pentagon’s Office of Strategic Capital (OSC) is reportedly considering structuring the investment through penny warrants, which could provide the US with an equity interest in the company without requiring a significant upfront capital investment.

The report came a day after US President Donald Trump said Washington would take control of a fifth of Venezuela’s vast oil reserves.

Trump provided few details about the arrangement but said the US had secured majority control of more than 65 billion barrels of Venezuela’s proven oil reserves through a partnership with private businesses.

The Pentagon disputed the report’s description of the proposed investment structure.

Responding to a Reuters request for comment, Pentagon chief spokesperson Sean Parnell said the 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,” Parnell said, adding that this could include transaction structuring for developing and financing investments.

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

The reported arrangement comes amid growing US involvement in Venezuela’s energy sector and follows Trump’s remarks about American control over a significant share of the country’s oil reserves.