The U.S. Treasury Department has issued a general license allowing the provision of U.S. goods, technology and services to support oil and gas exploration, development and production in Venezuela — a significant relaxation of sanctions aimed at boosting output in the crisis-hit OPEC nation. The authorization, announced on Tuesday, permits U.S. companies to export specialized equipment and technical support needed to expand Venezuelan crude production, which currently hovers at around 1 million barrels per day. The move follows a series of earlier licenses that eased restrictions on exports, storage and trade of Venezuelan oil and could, according to the U.S. Energy Information Administration, lift crude output by up to 20 % in coming months.
Under the new license, contracts with Venezuela’s government or state oil company PDVSA must adhere to U.S. law and resolve disputes in U.S. courts, with payments to sanctioned entities deposited into a U.S.-overseen fund. However, it does not authorize the formation of new joint ventures or entities in Venezuela for exploration or production, a guardrail designed to limit deeper structural engagement into the sector. Routine maintenance work and repairs are covered, but broader investment and new business structures remain restricted.
The decision aligns with broader U.S. policy shifts following the capture of President Nicolás Maduro in early January and reflects Washington’s efforts to stabilize Venezuela’s economy and energy exports. The interim government led by Delcy Rodriguez has agreed to a notable $2 billion oil supply deal with the U.S., helping Venezuelan exports rebound from lows caused by earlier blockade measures. Separately, the National Assembly recently approved reforms granting foreign firms greater autonomy in oil production and sales, laying the groundwork for renewed international participation in Venezuela’s energy industry.
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