US Grants Oil License to Revive Venezuela's Sector—Trump Pushes Billions in Investment

The United States has issued a new general licence allowing oil companies to expand operations involving Venezuelan crude, signalling a significant easing of sanctions following the US-backed political transition in Caracas. The move, announced by the US Treasury Department on Thursday, is aimed at jump-starting Venezuela’s battered economy after the capture of former President Nicolas Maduro.

According to US officials, the licence authorises a wide range of midstream and downstream activities related to Venezuelan oil, including exporting, selling, storing, transporting, and refining crude, provided these activities are carried out by established US entities. However, the authorisation stops short of permitting upstream oil production inside Venezuela, an area currently restricted to Chevron Corp., which operates under a separate, special licence.

The decision follows the approval by Venezuelan lawmakers of a landmark reform of the country’s hydrocarbons policy, a step long sought by international energy firms. US President Donald Trump has said he expects American oil companies to invest billions of dollars to revive Venezuela’s oil sector, which has suffered from years of underinvestment, decaying infrastructure, and allegations of corruption.

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US officials said the move reflects the White House’s desire to accelerate Venezuela’s economic recovery under the new leadership. At the same time, the licence includes notable restrictions that could limit its broader impact, including a ban on transactions involving Chinese-linked entities. China has been one of the largest buyers of heavily discounted Venezuelan crude during the period of sanctions.

Under the licence, payments to Venezuela’s state oil company PDVSA must be routed through US-controlled accounts, and all contracts are governed by US law, with disputes to be settled in US courts. The Treasury Department has also mandated detailed reporting on oil transactions, including the final destination of Venezuelan crude.

Energy analysts described the licence as a necessary first step toward reopening Venezuela’s oil industry to foreign participation. Meanwhile, trading firms such as Vitol Group and Trafigura Group have begun marketing Venezuelan crude previously stranded due to sanctions, as the Trump administration maintains control over future oil sales and the handling of proceeds.

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