The White House on Monday said it's partnering with North American Blue Energy Partners in a deal that will give the Pentagon a stake in Venezuela's vast oil reserves.

In releasing new details of the plan, announced Friday, the White House said the U.S. is forming a new company with NABEP, already the second largest operator in Venezuela, in hopes of creating a new oil giant.

The deal will give the Pentagon a 35% ownership stake in the company, and the State Department will get a guarantee to purchase 20% of the output at cost.