Oil and Gas

US Grants Two Licences Allowing Oil Majors to Restart Operations in Venezuela

A man wearing a face masks walks past a mural depicting an oil pump and the Venezuelan flag in a Caracas street on May 26, 2022. (Federico Parra/AFP/Getty Images)

he US has relaxed its sanctions on Venezuela’s energy sector by granting two general licences and allowing several global energy companies to resume operations and negotiate new contracts in the South American country. This decision follows the capture and removal of Venezuelan President Nicolas Maduro by US forces in early January 2026, reported Reuters.

The US Treasury Department’s Office of Foreign Assets Control (OFAC) issued general licences to companies such as Chevron, bp, Eni, Shell and Repsol, enabling them to operate oil and gas projects in Venezuela. These companies are major partners of Venezuela’s state-run company PDVSA and maintain offices and stakes in Venezuelan projects.

The licences require payments for royalties and taxes to be routed through a US-controlled fund.

A separate licence allows international companies to engage with PDVSA for new investments.

However, these agreements necessitate additional permits from the OFAC and exclude transactions with entities in Russia, Iran or China.

A spokesperson of Chevron was quoted by the news agency as saying: “The new General Licenses, coupled with recent changes in Venezuela’s Hydrocarbons Law, are important steps towards enabling the further development of Venezuela’s resources for its people and for advancing regional energy security.”

Additionally, in a separate development, as reported by Reuters, India’s Reliance Industries has secured a general licence from the US, allowing it to purchase Venezuelan oil directly without breaching sanctions.

This move is expected to expedite Venezuela’s oil exports while helping Reliance replace Russian crude with discounted Venezuelan oil.

The issuance comes amid reports that India is shifting away from Russian oil purchases following President Donald Trump’s removal of a 25% tariff on Indian imports.

Earlier this year, Reliance acquired two million barrels of Venezuelan oil from trader Vitol, which also received US licences alongside Trafigura.

The relaxation of sanctions is part of a broader strategy to support economic recovery in Venezuela and foster responsible investment.

The US aims to revitalise Venezuela’s oil industry through a $100bn reconstruction plan and strengthen ties between Caracas and Washington.

The proceeds from Venezuelan oil sales are directed through a fund in Qatar before reaching the interim Venezuelan Government.

ExxonMobil and ConocoPhillips are currently evaluating potential re-entry into Venezuela after having their assets expropriated in 2007 under then-President Hugo Chavez.

While ExxonMobil considers Venezuela “uninvestable” at present, talks with the government continue while data is being gathered on the sector.

Last month, Venezuela reached an agreement with the US to export up to $2.8bn (1.1tn bolivars) worth of oil, according to President Trump.

John Freddy

John Freddy is a highly respected economist, columnist, and news writer with an accomplished career that began in 1982. Over the past four decades, he has been a prominent voice in financial journalism, delivering in-depth coverage and analysis of the stock market, including major indices like the NYSE, Nasdaq, S&P 500, and DJIA. John is also known for his expertise in commodities, focusing on key sectors such as oil, energy, food, gas, and consumer markets.