— The U.S. government structured its 35% stake in North American Blue Energy Partners (NABEP) through “penny warrants,” allowing Washington to preserve its ownership share as the Venezuelan oil venture raises additional capital, according to Reuters.Under the arrangement, the U.S. receives the economic benefits of a 35% shareholder, including dividends, even before exercising the warrants. The structure is designed to prevent Washington’s stake from being diluted as billions of dollars are raised to develop the fields.
The Pentagon also holds a right of first offer on NABEP’s oil production. It can purchase 20% of output at a price based on production costs, while additional barrels can be bought at market rates.
