Washington Set to Take 35% of the Venezuela Oil Vehicle Nabep
Venezuela · ENERGY
Key Facts
- —What happened The US government plans a 35% passive stake in NABEP, a Venezuelan oil company.
- —How big NABEP holds 100-year concessions for 17 oilfields with 65 billion barrels.
- —The catch The stake is passive, so the US does not run daily operations.
- —Who it hits Venezuela’s government and its oil industry face new US influence.
- —What comes next The deal is not closed; details may change.
Washington plans a 35% passive stake in a company running Venezuelan oilfields. The deal gives the US cheap oil for decades.
The United States government is set to take a 35 percent passive stake in Nabep. The company was built to run Venezuelan oilfields under the new opening.
The Deal at a Glance
The US government plans a 35% passive stake in NABEP. Alejandro Betancourt leads the firm.
The Wall Street Journal reported this on 29 August 2026.
The stake will be held through the Pentagon’s Office of Strategic Capital, which uses penny warrants to structure the investment. A passive stake means the US gets a share of profits but does not manage daily operations.
What the US Gets
Besides the 35% stake, the US has the right to buy 20% of NABEP’s oil production at cost. This means the US pays only the production cost, not the market price.
The State Department also gets first refusal on the remaining 80% of production. This could give the US access to vast oil supplies at low prices.
The Concessions
CNBC reported on 31 August 2026 that Venezuela granted NABEP 100-year concessions for 17 oilfields. These fields hold proven reserves of 65 billion barrels.
That is about one-fifth of Venezuela’s total reserves. The concessions give NABEP the right to extract oil for a century.
Who Is Alejandro Betancourt?
Alejandro Betancourt is a Venezuelan businessman who leads NABEP. He has been involved in energy and infrastructure projects.
His company will operate the oilfields, while the US government holds a passive stake. This arrangement separates ownership from control.
What Is a Penny Warrant?
A penny warrant lets the holder buy shares at a very low price, often a fraction of a cent.
The Pentagon’s Office of Strategic Capital plans to use these to acquire the stake.
This method lets the US gain ownership without spending taxpayer money upfront. The warrants are a common tool for such investments.
Reactions and Doubts
A Pentagon spokesman, Sean Parnell, said on 29 August 2026 that the office does not take equity stakes in private companies.
He said its role is limited to loans or guarantees.
This statement challenges the reported structure. However, other officials and reports confirm the plan.
Political Controversy
The deal has sparked debate in Washington. Some lawmakers question whether the Pentagon should own part of a foreign oil company.
But there is no evidence that Congress has denied the stake. All reporting describes an executive agreement.
What It Means for Oil Markets
If the deal closes, the US could secure a stable supply of oil at low cost. This might affect global oil prices.
The 20% at-cost purchase right is a significant advantage. It could reduce US dependence on other oil imports.
Venezuela’s Perspective
Venezuela’s acting president, Delcy Rodríguez, granted the concessions. The government hopes to revive its oil industry with foreign investment.
The deal gives NABEP operating control, but the US has veto power over board appointments. A majority of board members must be US citizens.
The Role of the Office of Strategic Capital
The Office of Strategic Capital is a Pentagon unit that invests in critical technologies. It usually provides loans, not equity.
Using penny warrants would be a new approach for this office. The structure is still being finalized.
Potential Value
Fox Business reported that the stake could be worth ‘hundreds of billions’ of dollars. This includes potential dividends from oil sales.
The US government would not pay cash for the stake. Instead, it receives the stake in exchange for political and military support.
What Comes Next
The deal is not yet closed. The Office of Strategic Capital must finalize the warrant structure.
Congress may review the agreement, but no hearings have been announced. The White House calls it ‘the biggest oil deal in world history.’
The Pentagon’s Office of Strategic Capital
The Office of Strategic Capital is part of the United States Department of Defense.
On 29 August 2026, Reuters quoted Pentagon spokesman Sean Parnell.
“The Office of Strategic Capital does not take equity stakes in private companies,” he said. He added that its role is limited to loans, loan guarantees, or technical assistance.
How the Penny Warrants Work
Penny warrants are financial instruments that give the holder the right to buy shares at a very low price, often one cent. The Wall Street Journal reported on 29 August 2026 that the Pentagon planned to use penny warrants to get its 35% stake.
This means the U.S. government could buy a large number of shares for almost nothing, but only if the company does well. If NABEP’s value rises, the warrants become very valuable.
The Role of the State Department
The State Department is the United States government’s foreign affairs agency.
In this deal it gets the right to buy 20 percent of the company’s oil at cost.
The Associated Press reported that on 31 August 2026.
It also has the right of first refusal on the remaining 80% of production, according to Reuters on 1 September 2026. This means the U.S. can decide to buy more oil before other buyers.
What the 35% Stake Means in Practice
A 35% stake means the U.S. government would own a little over one-third of NABEP’s parent company. This could give it significant influence over decisions, but not full control.
Fox Business reported on 1 September 2026 that the U.S. gets veto power over board appointments. It also requires a majority of board members to be U.S. citizens.
This ensures the U.S. has a strong say in how the company is run.
The 100-Year Concessions Explained
A 100-year concession means NABEP has the right to extract oil from those fields for a century. This is extremely long, as typical oil contracts last 20 to 30 years.
CNBC reported on 31 August 2026 that Venezuela granted concessions for 17 oil fields. These fields have proven reserves of 65 billion barrels.
That is about one-fifth of Venezuela’s total reserves, as Infobae noted on 1 September 2026.
What Happens Next
The deal has not been finalized yet. The Wall Street Journal reported on 29 August 2026 that the agreement is planned, but no final contract has been signed.
Reuters noted on 29 August 2026 that the Pentagon’s spokesperson questioned the structure, so there may be legal or procedural hurdles. The next steps likely involve further negotiations and approvals.
Frequently Asked Questions
What is a passive stake?
A passive stake means owning a share of a company without controlling its daily operations. The US gets profits but does not run the oilfields.
How does the US buy oil at cost?
The deal gives the US the right to purchase 20% of NABEP’s production at production cost. This is much cheaper than market prices.
What is a penny warrant?
A penny warrant is a right to buy shares at a very low price. The Pentagon uses it to acquire the stake without upfront cash.
Is the deal final?
No, the deal is not closed. The structure is still being worked out, and details may change.
Connected Coverage
Sources: Wall Street Journal; CNBC; Associated Press; Reuters; CNN Business; Fox Business; Infobae; Seoul Economic Daily; NABEP; World Socialist Web Site.
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