The US administration has authorised US oil companies to rehabilitate existing oil drills, pipelines, and other assets in Venezuela despite ongoing U.S. sanctions (U.S. Treasury Department statement, 10/02/2026).
The license permits "transactions for the maintenance of oil or gas operations in Venezuela, including the refurbishment or repair of items used for exploration, development, or production activities." It also covers shipping and logistics services, providing legal cover to work with Venezuela's government-run port operators. Companies are still awaiting a Treasury license to explore and produce crude oil.
The license retains restrictions from prior authorizations, prohibiting dealings with entities linked to Russia, Iran, North Korea, China, or Cuba. Payments to sanctioned entities must go into U.S.-controlled accounts for Venezuelan crude proceeds.
Recently, the U.S. has also issued licenses for trading Venezuelan oil and importing US chemicals to dilute Venezuela's heavy crude for transport. Notably, the license does not allow forming new joint ventures or entities in Venezuela for oil or gas exploration or production. Venezuela's National Assembly approved a reform to the country's main oil law in late January, granting foreign companies greater autonomy to produce, export, and retain sales proceeds (KEI, 02/02/2026).
The country's crude oil production dropped by 77% between 2013 and 2020 and has increased by 9%/year since, reaching 1 mb/d in 2024 (Enerdata Global Energy & CO2 data).