The US has lifted sanctions on Venezuela's oil sector

On Friday, the US significantly eased sanctions against Venezuela's energy sector and issued two general licenses that allow global companies to operate in the country's oil and gas projects while opening up space for new investments.

This is the most significant easing of sanctions since the detention of President Nicolás Maduro by US forces. The Office of Foreign Assets Control (OFAC) has allowed Chevron, BP, Eni, Shell, and Repsol to continue operations in Venezuela, where they still have stakes in projects and are major partners of the state oil and gas company PDVSA. However, payments for license fees and taxes must go through a US-controlled fund.

The second license allows companies to enter into contracts for new investments with PDVSA, for which they will need additional OFAC approvals. At the same time, it prohibits transactions with Russian, Iranian, or Chinese entities.

The move follows the reform of Venezuela's oil law. The US wants to attract $100 billion in investment and plans to control oil sales revenues until a "representative government" is established. The routing of revenues through a fund in Qatar has drawn criticism.

(reuters, lud)