Pentagon Reportedly Plans Stake in Venezuela Oil Venture as US Deepens Energy Role

The United States is reportedly preparing to take a direct financial interest in a Venezuelan oil venture, marking a significant expansion of Washington’s involvement in the country’s energy industry. The proposed arrangement would see the Pentagon acquire a minority stake in a private company linked to Venezuelan businessman Alejandro Betancourt.

According to reports, the US government is considering a 35% passive stake in North American Blue Energy Partners, the energy company associated with Betancourt. The proposed investment would also give the United States preferential access to part of the company’s future oil production.

The development comes shortly after US President Donald Trump announced a major agreement involving Venezuela’s vast petroleum reserves. The announcement has placed Venezuela’s oil industry at the centre of a broader US strategy focused on securing energy supplies, attracting investment and rebuilding the country’s deteriorating petroleum infrastructure.

Pentagon Could Become an Investor

The reported arrangement is unusual because it would put the US government in the position of holding an ownership interest in a private energy business.

The Pentagon’s Office of Strategic Capital has been discussed as the vehicle for the proposed investment. Reports indicate that the US stake could be structured through so-called penny warrants, a mechanism that could allow the government to obtain an equity position without making a large upfront investment.

Under the reported proposal, Washington would receive a 35% passive interest in North American Blue Energy Partners. The company would also provide the US with preferential rights to purchase around 20% of its oil production at cost.

Such an arrangement would give Washington both a financial interest in the venture and a direct advantage in accessing crude produced from the company's Venezuelan operations.

However, the Pentagon has disputed the characterization of the proposal as an equity investment. A Pentagon spokesperson said the Office of Strategic Capital does not take ownership stakes in private companies and is instead authorized to provide forms of capital assistance, including loans, loan guarantees and technical assistance.

That response leaves questions over the precise structure and status of the reported deal.

Venezuela’s Vast Oil Reserves at the Centre

The reported investment is part of a much larger US-Venezuela energy initiative.

Trump recently announced that the United States had secured majority control through a partnership involving more than 65 billion barrels of Venezuela’s proven oil reserves. The arrangement is expected to involve private-sector participation in the development of major oilfields.

Venezuela possesses some of the world's largest proven crude oil resources, but its petroleum industry has suffered from years of underinvestment, operational problems and declining production. Bringing large portions of the country's oil infrastructure back to full capacity would require substantial capital and technical expertise.

The new US-backed approach is therefore being presented as an effort to attract investment and revive production while giving American interests a stronger role in Venezuela's energy sector.

Venezuelan interim President Delcy Rodríguez has said the broader energy agreement is expected to run for 25 years and aims to increase crude production to more than 1.5 million barrels per day. The plan includes development of 17 strategic oilfields along with additional greenfield blocks.

Strategic Importance for Washington

For the United States, deeper involvement in Venezuelan oil could have implications beyond the financial returns from individual projects.

Venezuela's enormous reserves represent a potentially important source of crude at a time when global energy markets remain vulnerable to geopolitical disruptions. Greater access to Venezuelan production could eventually provide additional supply to international markets and strengthen US influence over a major energy-producing country in the Western Hemisphere.

The proposed preferential purchase arrangement would also give Washington a direct connection to future production from the venture.

At the same time, the plan could encourage private companies to participate in rebuilding Venezuela's oil sector. The country's aging infrastructure and years of limited investment have made large-scale development difficult, meaning that substantial financial and technical resources would be required before the country's production potential can be fully realized.

Questions Over the Deal

Despite the strategic significance of the reported proposal, several details remain unclear.

The Pentagon's statement questioning whether its Office of Strategic Capital can take an equity position has raised doubts about how the reported 35% interest would actually be structured. The White House and North American Blue Energy Partners had not publicly provided detailed clarification on the reported arrangement.

The proposal also comes amid a wider debate over the extent of US involvement in Venezuela's natural resources. Supporters argue that American participation could bring investment, modern technology and greater oil production to a sector that has struggled for years.

Critics, however, are likely to question the government's direct involvement in a private foreign energy venture and the long-term implications of giving US interests preferential access to Venezuelan crude.

For Venezuela, the challenge will be converting its enormous underground reserves into reliable production, government revenue and economic growth. For Washington, the proposed investment represents a potentially important shift from simply encouraging American companies to invest in Venezuela toward a more direct role in the country's oil economy.

If implemented, the arrangement could become one of the clearest signs yet of how closely US foreign policy and energy strategy are becoming intertwined in Venezuela.