U.S. Issues License for Oil Production in Venezuela Following Maduro's Arrest
Sources indicate that the U.S. government is preparing to issue a general license allowing American companies to produce oil and gas in Venezuela. This move aims to boost oil production in the OPEC member nation following the recent arrest of President Nicolás Maduro during a U.S. operation last month.
According to these sources, the Office of Foreign Assets Control at the Treasury Department will permit companies to explore and extract crude oil and natural gas, building on a previously issued license for the sale, storage, and refining of Venezuelan oil.
Additionally, the Treasury has issued a separate license allowing the sale of American diluents to process Venezuela's heavy crude oil into a more exportable form.
White House spokesperson Taylor Rogers stated that the administration is working "around the clock to ensure American oil companies can invest in Venezuela's oil infrastructure."
President Donald Trump has asserted that the U.S. will control oil sales and revenues indefinitely following Maduro's arrest on January 3. He indicated that the U.S. plans to invest $100 billion to restore Venezuela's energy industry to its historical peak, with profits to be shared among Venezuelans, American companies, and the U.S. government.
This decision comes at a time when Venezuela's oil production has plummeted to under one million barrels per day, down from three million barrels in the past, due to neglect, mismanagement, lack of investment, and prolonged sanctions.
In a practical step to secure supplies, Washington and Caracas agreed last month to sell 50 million barrels of Venezuelan oil, with European trading firms Vitol and Trafigura handling the marketing of these supplies.
This initiative marks a significant shift in U.S. policy towards Venezuela and paves the way for a substantial influx of foreign investment in the energy sector, with hopes of restoring Venezuela to its former status as one of the world's largest oil producers.
