US permits oil majors to resume Venezuelan operations and broadly approves new energy investment
The U.S. eased its sanctions against Venezuela's energy industry on?Friday. It issued two general licenses allowing global energy companies? to resume oil and?gas operations in the OPEC?member?and other companies?to negotiate??contracts? on investments in???new???energy operations?.
The Treasury Department’s Office of Foreign Assets Control has issued a license allowing Chevron BP Eni Shell Repsol and Repsol resume their oil and gas operations.
The second license is for companies to invest in Venezuelan oil or gas. The license does not permit transactions with Russian, Iranian, or Chinese companies or entities controlled or owned by joint ventures in these countries.
This is the largest relaxation of sanctions on Venezuela since U.S. troops captured and ousted President Nicolas Maduro in Venezuela last month.
Since 2019, President Donald Trump has imposed sanctions against Venezuela.
Trump wants energy companies to invest $100 billion into Venezuela's energy industry. Chris Wright, the U.S. Energy secretary, said Thursday that Venezuelan oil sales have reached $1 billion since Maduro was captured and will reach another $5 billion within months.
Wright said that the U.S. would control the profits from the sales until Venezuela establishes a "representative" government.
Treasury has issued several general licenses since last month to facilitate oil sales, exports, imports and storage from Venezuela. The Treasury also authorized the supply of U.S. technology, software, or goods for the exploration, production, or development of oil and natural gas in Venezuela.
Hugo Chavez, then president of Venezuela, seized Exxon Mobil in 2007 and ConocoPhillips the following year. Trump's administration is trying to convince these companies to invest as well in Venezuela. Exxon Mobil's Darren Woods told Trump at a White House meeting last month that Venezuela is "uninvestable".
Wright stated on Thursday that Exxon was in discussions with the Venezuelan Government and collecting data about the oil industry. Exxon didn't immediately comment.
(source: Reuters)
