US Allows Oil Companies to Operate in Venezuela
The United States has issued a general licence allowing American oil companies to operate in Venezuela’s oil sector, easing some restrictions imposed under existing sanctions. The decision marks a shift in Washington’s approach toward the South American nation’s energy industry.
What the Licence Permits
Under the licence, US oil companies are allowed to export, sell, store and refine Venezuelan crude oil. However, the permission does not automatically allow new oil production within Venezuela without additional approvals. Several sanctions on Venezuela’s government and state entities remain in place.
Background to the Decision
Venezuela holds some of the world’s largest proven oil reserves, but production has fallen sharply over the past decade due to sanctions, underinvestment and infrastructure decay. The new licence is expected to support limited commercial activity while maintaining pressure on the Venezuelan government.
Industry Impact
Energy companies are expected to assess commercial and legal risks before expanding operations. While the move opens the door to broader engagement, analysts say large-scale investment will depend on further clarity on sanctions and regulatory stability.
