WASHINGTON: The US eased sanctions on Venezuela’s energy sector on Friday, issuing two general licenses that allow global energy companies to resume oil and gas operations in the OPEC member and for other companies to negotiate contracts on investments in new energy operations.
The Treasury Department’s Office of Foreign Assets Control issued a general license allowing Chevron, BP, Eni, Shell and Repsol to resume oil and gas operations in Venezuela. Those companies still have offices in the country. The authorization for the oil majors’ resumption of operations requires payments for royalties and Venezuelan taxes to go through the US-controlled Foreign Govern-ment Deposit Fund.
The other license allows companies around the world to enter contracts with state oil company PDVSA for new investments in Venezuelan oil and gas. The contracts are contingent on separate permits from OFAC.
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