The United States today eased sanctions on Venezuela's energy sector, issuing two general licenses that allow global oil majors to resume oil & gas operations in the OPEC member country, and enabling other companies to negotiate investment contracts for new activities.
The Treasury Department's Office of Foreign Assets Control (OFAC) issued a general license permitting Chevron, BP, Eni, Shell, and Repsol to restart operations in Venezuela. These companies still maintain offices in the country.
The authorization for the resumption of activities by major oil companies requires that payments of Venezuelan royalties and taxes pass through the US-controlled Foreign Government Deposit Fund.
The other license allows companies worldwide to enter into contracts with state oil company PDVSA for new investments in Venezuela's oil & gas sector. Such contracts are subject to separate permits issued by OFAC.
The authorization does not allow transactions with companies in Russia, Iran, or China, nor with entities owned or controlled by joint ventures with parties resident in those countries.
The move represents the largest easing of sanctions against Venezuela since US forces arrested and ousted President Nicolas Maduro last month.
(Translated by Agnese Napoletti, editing by Sabina Suzzi)
