Maurel & Prom hopes for a resumption of Venezuelan oil sales boosted with the easing of sanctions

Maurel & Prom, a French oil producer, is optimistic that it will be able to resume the export of Venezuelan crude oil soon after the United 'States government eased'sanctions against the country on Friday. On Friday, the U.S. government issued two general licenses, allowing major energy companies to operate in OPEC-member Venezuela. This is the biggest easing of sanctions against Venezuela since U.S. troops 'captured' and removed President Nicolas Maduro.

Maurel & Prom referred to the recent developments as a "constructive move", even though they were not listed in a list?of companies?covered by licences.

The statement also added: "A stable, predictable environment will unlock value for all stakeholders."

Early trading saw shares of the company down by?4%.

Since the second quarter last year, the?group is unable to export Venezuelan crude oil. This was because the U.S. administration of President Donald Trump suspended the licences of the group and other oil companies operating in South America. It applied for a new license with the?U.S. Office of Foreign Assets Control, or OFAC, requested a full resume of operations in Venezuela in early January.

The company also noted an increase in reserves identified in Venezuela. Studies confirmed 'the potential of zones that were previously unproven.

Maurel & Prom announced on Monday that it's activities in the field of Urdaneta Oeste, where M&P Iberoamerica holds a 40% interest, were running smoothly and they are ready to move into the next phase if the authorisation has been issued.

The field produced an average of 21,000 barrels per day, which translated into a net production of 8,400 barrels per day for M&P Iberoamerica. Reporting by Alessandro Parodi Editing Sudip Kar Gupta, David Goodman

(source: Reuters)