Venezuela suspends 19 oil, gas production-sharing contracts signed under Maduro government, sources say

Four sources with knowledge of the?move? said that Venezuela's Oil Ministry has suspended a total of?19 oil-production-sharing contracts signed by?private companies under President Nicolas Maduro.

Sources say that the suspension of the contracts has not affected the oil and gas production in the country. The sources added that the state oil giant PDVSA continues to sell crude oil produced under these contracts even though they are suspended.

Sources said that Caracas and Washington would review contracts and could recommend revoking certain of them. Sources say that the Venezuelan and U.S. government are reviewing the credentials for the companies who signed the contracts. Some of the companies were 'little-known, and the deals had been signed when Venezuela was under U.S. sanction.

In January, the United States captured Maduro and took control over Venezuela's oil sales and exports. The U.S. Treasury Department has since issued licenses to some companies that allows them to trade Venezuelan oil and operate in the country's oil sector.

Venezuela's National Assembly adopted a reform to the hydrocarbon law late in January, aimed at facilitating foreign investment in Venezuela's 'dilapidated' oil industry. The reformed law gives the government six months to review contracts.

The?White House and Venezuela's oil minister did not immediately respond to a?request for comment. Reporting by Marianna Paraga in Houston and Erin Banco and staff in New York; Editing by Simon Webb, Nia Williams and Nia Williams

(source: Reuters)