US Eases Sanctions on Venezuela, Clears Path for Oil Firms to Resume Operations

The United States on Friday announced a sweeping easing of sanctions on Venezuela’s energy sector, issuing two general licenses that allow major international oil companies to resume oil and gas operations in the OPEC member state and paving the way for new foreign investment.

The move marks the most significant relaxation of restrictions on Venezuela since U.S. forces detained President Nicolás Maduro and removed him from power last month, reshaping the political and economic landscape in Caracas.

The U.S. Treasury Department’s Office of Foreign Assets Control (OFAC) issued a general license permitting energy giants Chevron, BP, Eni, Shell, and Repsol to operate oil- and gas-related projects in Venezuela.

These firms have long maintained offices and equity stakes in Venezuelan ventures and are among the principal partners of the state oil company, PDVSA.

Under the terms of the license, oil companies are required to pay Venezuelan royalties and taxes through a foreign government deposit fund controlled by the United States, ensuring oversight of revenue flows.

A second license allows companies from various regions to negotiate contracts with PDVSA to inject fresh capital into Venezuela’s oil and gas sector. However, such agreements remain subject to separate OFAC approvals.

The authorization explicitly prohibits transactions involving companies in Russia, Iran or China, or entities owned or controlled through joint ventures with individuals from those countries.

The United States has imposed sanctions on Venezuela since 2019 during the first term of Donald Trump, targeting the country’s vital oil exports in an effort to pressure its leadership.

Now, the administration appears to be recalibrating its strategy. President Trump is seeking to attract up to $100 billion in energy investment into Venezuela’s oil and gas sector, aiming to revitalize output in a country that holds some of the world’s largest proven crude reserves.

U.S. Energy Secretary Chris Wright said Thursday that oil sales since Maduro’s arrest have generated $1 billion and are expected to yield an additional $5 billion in the coming months.

Wright added that the United States will retain control over oil sale proceeds until Venezuela has what he described as “a government that represents the people.”