The US Treasury Department’s Office of Foreign Assets Control (OFAC) has issued a sweeping relaxation of sanctions on Venezuela’s energy sector. The move grants two general licenses that allow international oil and gas companies (IOCs) to resume operations and negotiate new investments in Venezuela, home to some of the world’s largest proven oil reserves, as reported by Reuters.

The primary general license authorizes major industry players, including Chevron, BP, Eni, Shell, and Repsol, to restart and expand upstream activities. These firms, which have maintained project stakes and skeletal offices in the country despite years of restrictions, are now permitted to deepen their partnerships with state-owned Petróleos de Venezuela (PDVSA).

To maintain financial oversight, the Treasury Department mandated that all royalty payments and tax obligations generated by these ventures be routed through the US-controlled Foreign Government Deposit Fund.

A separate license now permits global firms to negotiate new oil and gas investment contracts with PDVSA. However, the US government maintains a strict “recalibration” policy: while negotiations are permitted, any resulting agreements require case-by-case approval from the Treasury Department before execution can proceed.

Despite these regulatory shifts, industry giants ExxonMobil and ConocoPhillips recently pushed back against administrative claims of imminent return, stating they have not yet engaged in formal talks regarding a resumption of Venezuelan operations.

This policy pivot follows years of targeted restrictions that began in 2017, designed to cut off revenue to Caracas amid concerns over democratic governance and human rights. The previous regime of sanctions froze PDVSA’s international assets and barred US firms from transactions without specific, highly restricted exemptions.