Reuters on anti-dilution warrants (via BOE Report)

… The U.S. government structured its 35% position in a Venezuelan oil venture as warrants that protect Washington&#8217;s stake from being weakened by fresh raises of capital, a U.S. official said.</p> <p>Speaking on Thursday about the deal announced last week by President Donald Trump, the official said the Pentagon structured the stake using &#8220;penny warrants&#8221; in North American Blue Energy Partners (NABEP), giving it the right but not the obligation to buy the equity at a later date. Penny warrants can be exercised at a token price.</p> <p>NABEP, controlled by Venezuelan businessman Alejandro Betancourt, was granted 100-year rights to 17 oilfields holding an estimated 65 billion barrels of reserves as part of the recent deal between Washington and Caracas.</p> <p>The concessions were awarded without a competitive process. The U.S. has been working to revive the South American country&#8217;s oil sector after American forces captured and removed former President Nicolas Maduro from power in January.</p> …