Washington eases sanctions regime to boost oil sector

The administration of the President of the United States Donald Trump The US Department of the Treasury has taken a further step toward reopening the Venezuelan oil sector to US companies, while formally maintaining the sanctions regime. The Treasury Department has issued a general license authorizing companies to repair and recommission existing wells, pipelines, and other energy infrastructure in the country. The measure allows for maintenance, renovation, and logistical support for oil and gas operations, including collaboration with Venezuelan state-run ports. Exploration for new fields, nor the creation of new companies or industrial alliances for production, are currently prohibited. According to the US government, the measure serves to pave the way for a possible gradual return of US producers to a country that possesses the world’s largest crude oil reserves, but has suffered for years from underinvestment and severely deteriorating infrastructure.

The license granted by Washington maintains strict limits: any cooperation with parties linked to Russia, Iran, North Korea, China, and Cuba is prohibited, while any payments to sanctioned entities must be made through US-controlled accounts. According to industry analysts, the main immediate benefit will go to oil services companies, which will be able to resume operations and reactivate existing production. Even companies already present in the country, such as European ones and the only major US producer remaining operational, could take advantage of the measure to marginally increase production without committing significant new capital. The measure is part of a broader strategy by the Trump administration, aimed at increasing global oil supply and reducing dependence on other producers, ahead of a possible comprehensive review of sanctions in the coming months.

Washington eases sanctions regime to boost oil sector

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