US Protects Venezuela Oil Stake
The US government structured its 35 percent stake in a Venezuelan oil venture using warrants to protect against capital dilution. The arrangement maintains ownership levels while funding billions in project development.
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The United States secured a 35% stake in a Venezuela oil venture using penny warrants to protect its position from capital dilution, a U.S. official said Thursday afternoon. The arrangement grants Washington the right to buy equity later without immediate dilution as project costs mount. The deal positions the Pentagon to capture full equity value once production matures while securing immediate dividend rights.
