US Permits Firms to Repair, Invest, and Expand Venezuelan Oil
New US Licences Allow Expanded Venezuela Oil and Gas Operations
Washington: The United States today issued multiple licences authorising oil and gas companies to expand operations in Venezuela’s energy sector as part of President Donald Trump’s policy to reopen and develop the country’s oil industry for the shared benefit of the American and Venezuelan people.
The licences come against the backdrop of long-standing US sanctions that have restricted Venezuela’s oil exports and foreign investment for years, contributing to a sharp decline in crude production. Venezuela’s output fell from around 3 million barrels per day in the early 2000s to less than 1 million barrels per day in recent years due to economic mismanagement, underinvestment, and sanctions. The new authorisations are expected to support increased production, repair infrastructure, and make Venezuelan crude more accessible to the US market.
The latest licences, issued on February 13, include Venezuela General License (GL) 50, authorising certain firms in Venezuela to expand operations, including pursuing additional upstream oil and gas projects. On the same day, Venezuela GL 49 was issued, permitting oil and gas companies to negotiate and enter into contingent contracts with Venezuelan entities to invest in upstream projects. The administration said all proposed contracts will be reviewed to ensure they advance the interests of both American and Venezuelan people, strengthen supply lines in the Western Hemisphere, and modernise the oil and gas industry.
On February 10, OFAC issued Venezuela GL 48, allowing US firms to provide goods, equipment, and services to Venezuela’s oil and gas sector. The administration emphasised that US companies will play a critical role in repairing and upgrading Venezuela’s infrastructure for the benefit of the Venezuelan people. Earlier, on February 3, Venezuela GL 47 authorised firms to sell US-origin diluent — essential for processing heavy crude — to Venezuelan operators. Officials noted that this step would support Venezuela’s oil output while also benefiting the US economy.
The first licence in this series, GL 46, was issued on January 29. It authorises US-incorporated firms to market Venezuelan oil worldwide, including in the United States. Payments must be made on commercially reasonable terms, contrasting with the heavily discounted prices previously offered by the Maduro regime. Revenues are to be deposited into accounts in the United States under oversight by the Departments of State and Treasury, ensuring that funds are spent transparently and for the benefit of the Venezuelan population.
The media note highlighted that all licences are intended to allow American and other aligned companies to participate constructively in Venezuela’s economic recovery and responsible investment. It also stressed that additional authorisations may be issued as necessary in furtherance of President Trump’s vision. The administration repeated that the overarching goal is to restore Venezuela’s prosperity, safety, and security for the benefit of both the American and Venezuelan people.
Venezuela possesses vast natural resources but has faced prolonged instability, corruption, and economic mismanagement that have constrained growth. The licences are expected to help modernise the country’s oil and gas industry, increase production, and improve US supply lines, while enabling companies to play a critical role in infrastructure repair, stock rotation, and long-term investment.
– global bihari bureau
