US Eases Venezuela Oil Sanctions

The U.S. has eased sanctions on Venezuela's energy sector, issuing two general licenses that permit global energy companies to resume oil and gas operations and negotiate new investment contracts. This move, the biggest relaxation since the removal of Nicolás Maduro, allows companies like Chevron Corporation, BP, Eni, Shell plc, and Repsol to operate in Venezuela. Payments for royalties and taxes will go through the U.S.-controlled Foreign Government Deposit Fund. The authorization excludes transactions with companies in Russia, Iran, or China. This follows Venezuela's reform of its main oil law, granting autonomy to foreign producers. The Trump administration, which initially imposed sanctions in 2019, is now seeking $100 billion in investments and aims to control oil sales proceeds until Venezuela establishes a 'representative government'. Companies like ExxonMobil and ConocoPhillips, whose assets were expropriated in 2007, are being encouraged to reinvest.