U.S. officials are moving toward the issuance of a general license that would roll back certain sanctions on Venezuela's energy sector, three sources familiar with the preparation said on Tuesday. The contemplated authorization would replace a prior plan that relied on issuing individual exemptions to companies seeking to operate in the country.
Sources described the change in approach as part of ongoing efforts by Washington to facilitate major energy-related initiatives involving Venezuela. Following the U.S. capture of Venezuelan President Nicolas Maduro earlier this month, U.S. officials have indicated they would ease sanctions imposed on the country's energy industry in order to help enact a $2 billion oil supply agreement between Caracas and Washington and to support an ambitious $100 billion reconstruction plan for Venezuela's oil infrastructure.
In recent weeks, many partners and customers of state oil company PDVSA have sought authorizations from U.S. authorities. Among those requesting individual licenses is U.S. major Chevron, according to the sources. These applications have aimed to expand oil production and shipments from the OPEC member.
However, the volume of individual requests submitted to the U.S. government has created administrative bottlenecks, the sources said, delaying efforts to scale up exports and to attract investment quickly into Venezuela's oil sector. The shift toward a general license is presented by officials as a mechanism to accelerate those processes by reducing the need for case-by-case approvals.
Representatives of the U.S. Treasury Department and the White House did not immediately reply to requests for comment on the reported shift toward a general license.
Context and implications
The reported plan would alter the mechanism through which U.S. authorities permit commercial engagement with Venezuela's state oil industry - moving from individualized approvals to a broader, economy-wide authorization targeted at energy activity. Sources framed the change as intended to expedite both a short-term supply deal and a long-term reconstruction effort in the sector.
Details on the scope and timing of the proposed general license were not provided by the sources. The pace at which exports and investment can increase remains contingent on the issuance of the license and on administrative actions by U.S. agencies.