Trump administration eases Venezuela oil sanctions, authorizes Repsol and other energy firms
The U.S. Treasury Department issued two new licenses Friday allowing foreign oil companies including Spain's Repsol to resume and expand operations in Venezuela.
16 hrs ago
The U.S. Treasury Department's Office of Foreign Assets Control issued two new licenses Friday that ease restrictions on foreign oil companies operating in Venezuela, authorizing resumption and expansion of activities by major energy firms.
The licenses, designated General License 49 and General License 50, permit negotiations, contingent contracts, and transactions related to petroleum and gas sector operations in Venezuela. General License 50 specifically authorizes BP, Chevron, Eni, Repsol, and Shell to conduct operations in the country.
Spain's Repsol, which had previously operated in Venezuela under restrictions, is now authorized to resume operations and undertake new investments in hydrocarbon exploration and production. The company may increase capital investments and production levels under the new framework.
The licenses do not eliminate the broader U.S. sanctions regime on Venezuela, which has been in place and intensified since 2019. However, they substantially reduce operational restrictions for the named companies and facilitate foreign investment in Venezuela's oil sector.
According to the Treasury Department's authorization, contracts between the named companies and the Venezuelan government, state oil company Petróleos de Venezuela (PdVSA), or PdVSA entities must be governed by state law. The licenses permit transactions that would otherwise be prohibited under Venezuela sanctions regulations, including those involving the Venezuelan government and PDVSA.
The announcement follows the capture of former Venezuelan president Nicolás Maduro by U.S. troops and reflects a coordinated plan between the Washington administration and Venezuela's interim government led by Delcy RodrÃguez to reopen the country's petroleum market. The measure represents the most significant impact on the energy sector since the Trump administration's intervention in Venezuela.
The authorization extends to five specific companies, with Repsol among those receiving explicit permission to expand its operations. The licenses establish strict conditions for oversight and information reporting requirements for the authorized firms.