MercoPress. South Atlantic News Agency

US lifts key curbs on Venezuelan oil, clearing Repsol and other majors to operate

The authorisations follow a high-level trip to Caracas by US Energy Secretary Chris Wright, who said the embargo on Venezuelan crude had “essentially ended”

Washington has issued new authorizations that allow oil-and-gas-related transactions in Venezuela for companies including BP, Chevron, Eni, Repsol and Shell, in a shift that could unlock stalled projects and settle payments previously constrained by US sanctions.

The move—handled through the Treasury Department’s Office of Foreign Assets Control (OFAC)—builds on a set of Venezuela-related general licenses released this week, including measures covering certain activities involving Venezuelan-origin oil and the supply of specific items and services.

Under the framework described by the US administration, firms can carry out operations that were previously restricted, including those involving PDVSA and Venezuelan state entities. Restrictions remain, however: transactions tied to actors linked to China, Russia, Iran, Cuba or North Korea are barred, and any new investments would require additional approvals on a case-by-case basis.

The authorisations follow a high-level trip to Caracas by US Energy Secretary Chris Wright, who said the embargo on Venezuelan crude had “essentially ended” and argued that expanding energy activity could help raise output and employment. Wright also said Washington would retain control over oil proceeds until Venezuela has “a representative government.”

The easing comes as Venezuela advances a revamped legal framework for the sector, aiming to grant foreign producers greater operational and financial autonomy and to attract investment into an industry weakened by years of declining output and deteriorating infrastructure.

US oil sanctions were tightened from 2019 onward, forcing many international operators to rely on in-kind arrangements or narrowly scoped authorisations to keep limited activity running.

The shift also revives questions over investor appetite given political and operational risks. ExxonMobil chief executive Darren Woods has described Venezuela as “uninvestable,” while US officials argue the revised framework is intended to reduce uncertainty and accelerate operational agreements.