U.S. revises key licenses for Venezuela energy sector

June 11 (UPI) -- The U.S. Treasury Department, through its Office of Foreign Assets Control, announced revisions to seven key general licenses that govern oil, natural gas, petrochemical and mining operations in Venezuela.

The measures, published Wednesday, form part of a regulatory framework designed to allow certain economic activities in Venezuela under conditions defined by Washington.

The changes do not lift U.S. sanctions or fully normalize economic relations with Caracas. Instead, they establish updated mechanisms for specific activities, identify who may participate, and set the legal and financial conditions under which operations may proceed, according to Venezuelan news outlet Efecto Cocuyo.

One of the most significant changes concerns dispute resolution and the legal jurisdiction governing commercial contracts.

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Until now, international companies that sign agreements with the Venezuelan government or state-owned oil company Petróleos de Venezuela, known as PDVSA, were required to submit disputes exclusively to U.S. laws and courts.

Under the updated framework, contracts can be governed, interpreted and litigated under the legal systems and courts of the United States, France, Singapore and the United Kingdom.

The updated licenses replace versions issued between February and March and modify the conditions for certain commercial transactions, according to El Nacional.

In the oil and petrochemical sectors, the revised licenses authorize activities that range from crude oil production, refining and exports to the United States to importing diluents needed to process extra-heavy crude from Venezuela's Orinoco Belt.

In the mining sector, the changes create a regulated framework for the exploration, extraction and commercialization of strategic minerals, including gold, under compliance standards intended to curb illegal mining activities.

The revised licenses are expected to facilitate operations for major international companies that have been expanding their presence in Venezuela after the January capture of Nicolás Maduro during a U.S. military operation.

Among the companies positioned to benefit are U.S.-based Chevron, Spain's Repsol, Italy's Eni, France's Maurel & Prom and Britain's BP.

The measure also complements recent agreements aimed at increasing Venezuela's energy production capacity, including a technology memorandum signed Wednesday between interim President Delcy Rodríguez and oilfield services provider SLB, formerly known as Schlumberger.

"I know the new technologies you will bring to Venezuela will have a major impact on exploration and production, and that will undoubtedly contribute to improving PDVSA's productivity," Rodríguez said during the signing ceremony, according to local outlet Caraota Digital.

Despite the contractual flexibility introduced by the revisions, the Treasury Department maintains strict restrictions intended to protect U.S. national security and the integrity of the international financial system.

Transactions, partnerships or capital flows involving entities from Russia, Iran, Cuba or North Korea, as well as companies controlled by the Chinese government, remain prohibited.

The updated licenses also prohibit the use of cryptocurrencies, opaque debt-swap arrangements and payments made in physical gold outside authorized banking channels.

The move reflects Washington's effort to balance energy market considerations with continued political pressure on Venezuela's government, allowing regulated energy flows to Western markets while preserving key sanctions mechanisms.