The U.S. government structured its 35% position in a Venezuelan oil venture as penny warrants in North American Blue Energy Partners, protecting its ownership from dilution during future capital raises. The Pentagon also holds rights to dividends before exercising the warrants and a separate right of first offer covering 20% of the company’s oil output at production cost, with the remainder bought at market prices. The deal grants NABEP, controlled by Venezuelan businessman Alejandro Betancourt, 100-year rights to 17 oilfields containing an estimated 65 billion barrels of reserves. The concessions were awarded without a competitive process as Washington works to revive Venezuela’s oil sector after American forces captured and removed former President Nicolas Maduro from power in January. Betancourt’s past business dealings have drawn scrutiny from U.S. and European authorities, though he has never been charged and denies wrongdoing. Venezuela’s output is now about 1.1 million to 1.2 million barrels per day, while U.S. Energy Secretary Chris Wright said it could more than double in a few years as other announced deals take effect. The Pentagon also requires former Cerberus Capital Management employees to recuse themselves from transactions involving the firm’s assets and refer them to Commerce Secretary Howard Lutnick.