U.S. eases some Venezuela oil sanctions, opening trade for American firms
WASHINGTON — The Trump administration has lifted some sanctions on Venezuela’s oil industry to make it easier for U.S. companies to move and process the country’s crude, even as broader restrictions on production remain in place, according to the Treasury Department.
- Advertisement -
The Treasury’s Office of Foreign Assets Control issued a general license authorizing U.S. entities to buy, sell, transport, store and refine Venezuelan-origin oil. The measure is intended to “help flow existing product” out of the country, a White House official said, adding that more steps to ease restrictions are expected soon.
The authorization permits transactions involving the government of Venezuela and state oil company PDVSA tied to the “lifting, exportation, re-exportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation” of Venezuelan crude, including refining. It does not lift sanctions on expanding production, and additional U.S. approvals would be required for new output or field work.
OFAC’s license applies to established U.S. companies and specifically excludes firms and individuals from China, Iran, North Korea, Cuba and Russia. It also bars payment arrangements that are not commercially reasonable, as well as deals involving debt swaps, payment in gold or digital currency.
Energy analysts said the move clarifies what American firms can do in Venezuela while preserving tight scrutiny for others. “In short, it appears to offer ‘America First,’ others ask sanctions relief,” said Kevin Book of ClearView Energy Partners, noting that non-U.S. entities remain subject to case-by-case review.
Jeremy Paner, a former OFAC sanctions investigator now at Hughes Hubbard & Reed, said the license is operationally broad — covering refining, transportation and lifting — but narrow in scope because it applies only to U.S. companies.
Oil producers Chevron, Repsol and Eni, India’s Reliance Industries and several U.S. oil service providers had recently sought permissions to expand output or exports from the OPEC member. The new license could free up some cargoes and services, but any effort to boost production will require additional U.S. sign-offs.
Separately, the United States and Venezuela have agreed to an initial sale of 50 million barrels of Venezuelan crude, with European trading houses Vitol and Trafigura marketing the supply, according to the announcement.
The U.S. measures arrive as Venezuela’s legislature approved a reform of the country’s main oil law that would grant greater autonomy to private producers operating in joint ventures or under new contracts, including the ability to commercialize their output. The bill also formalizes a production-sharing model first introduced under President Nicolás Maduro and negotiated with smaller energy firms in recent years.
Acting President Delcy Rodríguez hailed the reform as a “historical leap,” saying, “We are taking important steps,” after a call with President Donald Trump.
Analysts cautioned that OFAC’s exclusions could complicate operations for projects partnered with sanctioned countries. Francisco Monaldi, director of the Latin American Energy Program at Rice University’s Baker Institute, noted that ventures with Russian and Chinese entities produce about 22% of Venezuela’s oil. “If they cannot export the oil coming from these ventures, that’s a big problem,” he said.
While the general license opens the door for American companies to re-enter parts of Venezuela’s oil trade, the administration has kept core production constraints intact and signaled further announcements to come — a calibrated step that may shift crude flows without immediately reshaping the country’s output.
By Abdiwahab Ahmed
Axadle Times international–Monitoring.
