US Government Approves Oil Production License for Venezuela Amid Political Changes
Informed sources indicate that the U.S. government is preparing to issue a general license permitting American companies to produce oil and gas in Venezuela. This move aims to boost oil production in the OPEC member nation after President Nicolás Maduro was arrested last month during a U.S. operation.
According to these sources, the Office of Foreign Assets Control (OFAC) will allow companies to explore and extract crude oil and natural gas, following a prior license that permitted the sale, storage, and refining of Venezuelan oil.
Additionally, the Treasury Department has issued a separate license allowing the sale of U.S. diluents for processing Venezuelan heavy crude oil into exportable products.
White House spokesperson Taylor Rogers stated that the President's team is "working around the clock to ensure U.S. oil companies can invest in Venezuela's oil infrastructure."
President Donald Trump confirmed that Washington will control oil sales and revenues indefinitely following Maduro's arrest on January 3. He noted plans for a $100 billion investment aimed at restoring Venezuela's energy sector to its historical peak, with profits intended to be shared among Venezuelans, U.S. companies, and the United States.
This decision comes as Venezuelan production has significantly declined, dropping to below one million barrels per day from previous levels of three million barrels per day due to neglect, mismanagement, lack of investment, and ongoing sanctions.
In a practical effort to secure supplies, Washington and Caracas agreed last month to sell 50 million barrels of Venezuelan oil, with European trading firms Vitol and Trafigura responsible for distribution.
Data shows that Venezuelan oil exports rose to approximately 800,000 barrels per day in January, up from 498,000 barrels in December.
This shift represents a significant change in U.S. policy towards Venezuela and opens the door for substantial foreign investment in the energy sector, amid hopes of restoring Venezuela to its former status as one of the world's largest oil producers.
