US allows its companies to produce and export Venezuelan oil

The US administration has decided to ease sanctions on Venezuela’s oil industry, allowing American companies to work with state-owned PDVSA and the Venezuelan government under a broad general license. The move is expected to facilitate entry into the Venezuelan market following political changes in the country.

Under the new rules, operations related to the production, export, refining, storage, and transportation of Venezuelan oil are permitted. At the same time, payments in gold or cryptocurrency are prohibited, as are deals with Russian, Iranian, Cuban, and North Korean companies, as well as transactions involving vessels and firms controlled by those states.

Major oil companies, including Chevron, Repsol, ENI, and Reliance Industries, have already applied for permits to expand production and exports. US oilfield services companies are also expected to gain greater freedom to operate in Venezuela.

Venezuelan lawmakers, for their part, have approved a reform of the country’s main oil law, granting greater autonomy to private producers in joint ventures and under new contracts.

These steps are expected to stimulate investment in Venezuela’s oil sector and increase crude exports, including supplies to US refineries.

Oil was one of the key reasons why the White House, under President Donald Trump, moved to remove Nicolás Maduro from power. Early in the pressure campaign against Venezuela, Trump demanded that the dictator return what he called “stolen US assets.”

This refers, in particular, to oil fields in Venezuela, where US companies once operated but which were nationalized under Maduro’s predecessor, Hugo Chávez.

Several US oil companies have in recent weeks filed applications for individual licenses to boost production or exports from Venezuela.