U.S. Issues New OFAC Licenses Easing Venezuela Oil Sanctions Under Tight Oversight

Overview

• OFAC unveiled three general licenses—48, 30B and 46A—covering U.S. equipment and services for exploration and production, specified port and airport transactions, and certain activities involving Venezuelan-origin oil.
• The authorizations allow maintenance, repair and rehabilitation of wells, pipelines and other assets, plus freight, logistics, maritime insurance and terminal services needed to support operations.
• Treasury requires contracts with the Venezuelan government or PDVSA to be governed by U.S. law with disputes resolved in U.S. courts, routes payments to sanctioned entities into U.S.-supervised funds, and bars new joint ventures in Venezuela.
• Dealings with entities tied to China, Russia, Iran, North Korea and Cuba remain prohibited, preserving restrictions even as operational pathways reopen.
• The U.S. EIA says Venezuelan crude output could rise by up to about 20% in the coming months, while companies including Chevron, Repsol, ENI and Reliance pursue individual approvals and U.S. Energy Secretary Chris Wright plans talks in Venezuela.