The U.S. government intends to take over 35% of the inactive shares of North American Blue Energy Partners, owned by Alejandro Betancourt, a Venezuelan businessman.

According to the Wall Street Journal, citing people involved in the talks, Washington also plans to obtain a right of first refusal to purchase 20% of the company’s output at cost.

Based on the same report, the Pentagon’s Strategic Investment Office plans to structure this investment through a “penny purchase option,” a mechanism that gives the United States ownership of shares without significant capital investment.

Sean Parrnell, the Pentagon’s senior spokesperson, responding to a Reuters request, said: “The Strategic Investment Office does not take equity positions in private companies.”

He added: “Based on legal authorities, the role of this office is highly limited to providing financial assistance in the form of loans, loan guarantees, or technical assistance; including structuring the deal for investment development and financing.”