The U.S. government plans to acquire a 35% passive stake in Venezuelan businessman Alejandro Betancourt’s North American Blue Energy Partners, the Wall Street Journal reported, citing people involved in negotiations. Washington also plans to secure preferential rights to purchase 20% of the company’s production at cost. The Pentagon’s Office of Strategic Capital reportedly intends to use penny warrants—options issued at a nominal price—to provide equity ownership without significant capital investment. The report followed U.S. President Donald Trump’s statement that the United States would take control of a fifth of Venezuela’s oil reserves. Trump gave few details, saying the U.S. had secured majority control of more than 65 billion barrels of Venezuela’s proven reserves through a partnership with private business. Pentagon chief spokesperson Sean Parnell told Reuters that the Office of Strategic Capital does not take equity stakes in private companies and is limited by statute to loans, loan guarantees and technical assistance, including transaction structuring. The White House and North American Blue Energy Partners did not respond to requests for comment outside regular business hours.