(Bloomberg) – Lionheart Capital is close to a $400 million deal for a stake in a Venezuelan oil field, in what would be one of the first major private investments in the country’s oil industry since the U.S. began easing sanctions.

Miami-based Lionheart signed a non-binding letter of intent with Swedish firm Keo Capital AB, which owns a stake in PetroUrdaneta, according to a statement released Monday.

Under the proposed deal, a new company owned by Keo and Lionheart would be formed and traded on the Nasdaq. The parties are negotiating and aim to execute a final agreement by Aug. 17, Keo said in the statement.

If a definitive agreement is reached, Keo would receive $400 million in shares of Lionheart Holdings, a blank-check company listed on the Nasdaq, according to people familiar with the matter, who asked not to be identified. The deal remains subject to due diligence and regulatory approvals in both Venezuela and the U.S.

Representatives for Lionheart and PDVSA didn’t reply to messages seeking comment.

Shares in Lionheart Holdings, the special purpose acquisition vehicle, gained roughly 0.4% Monday to trade at $10.83.

The deal comes amid a push to revive the nation’s oil industry by attracting private investment after years of state dominance. The government in Caracas has gradually loosened restrictions on foreign participation as Washington has eased sanctions after US forces captured former strongman Nicolás Maduro in January.

PetroUrdaneta, a joint venture with state-owned Petroleos de Venezuela SA, currently operates under a general license issued by the US Treasury Department. Its four mature light-oil fields, historically operated by Shell Plc, currently produce about 1,300 barrels a day. Like many aging PDVSA-operated assets, it would require significant investment, the people said.

Venezuela, a founding member of OPEC, holds one of the world’s largest oil reserves. But production, at around 1.2 MMbpd, is still less than a third of its peak in the 1970s. Its infrastructure has been largely neglected and is in need of massive capital injections, with the Trump administration urging foreigners to invest $100 billion to rebuild the industry.

Lionheart said in June that it had lined up commitments for as much as $2.25 billion for investments in the country’s oil industry.