US allows oil majors to resume Venezuela operations

The US eased sanctions on Venezuela’s energy sector on Friday, issuing two general licences that allow global energy companies to operate oil and gas projects in the OPEC member and for other companies to negotiate contracts to bring in fresh ‌investments.The Treasury Department’s Office of Foreign Assets Control issued a general licence allowing Chevron, BP, Eni, Shell and Repsol to operate oil and gas operations in Venezuela. Those companies still have offices in the country and stakes in projects, and are among the main partners of state-run company PDVSA.The authorisation for the oil majors’ operations requires payments for royalties and Venezuelan taxes to go through the US-controlled Foreign Government Deposit Fund.The other licence allows companies around the world to enter contracts with PDVSA for ⁠new investments in Venezuelan oil and gas. The contracts are contingent on separate permits from OFAC.The authorisation does not allow transactions ‌with companies in Russia, Iran, or China or entities owned or controlled by joint ventures with people in those countries.The move was the biggest relaxation of sanctions on Venezuela since US forces captured and removed President Nicolas ‌Maduro last month.08:25How Maduro’s abduction is set to change Latin AmericaHow Maduro’s abduction is set to change Latin America