US Grants Major Sanctions Relief to Venezuela’s Oil & Gas Industry

The United States has recently taken significant steps to provide sanctions relief for Venezuela’s oil and gas sector. Despite ongoing sanctions targeting the Government of Venezuela and entities with a 50% or greater ownership interest by the government, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued a series of General Licenses (GLs) that mark the most extensive easing of Venezuela-related sanctions in recent years.

These actions come in the wake of Venezuela’s political transition in January 2026 and comprehensive reforms to the country’s hydrocarbons law. The easing of sanctions is expected to occur in phases, with the initial phase involving the movement of oil already stored in Venezuela to the United States. General Licenses have been issued to permit the lifting of oil and the export of diluents to Venezuela. Larger trading companies have been favored with these licenses, while smaller entities are still required to submit specific license applications.

The second phase of sanctions relief focuses on the revitalization of Venezuela’s oil and gas sector. General Licenses have been issued to support existing fields and current industry players, as well as to facilitate the entry into contingent contracts for new exploration and production activities. However, it remains to be seen how quickly specific licenses will be issued for new players seeking to enter the sector.

One of the key General Licenses issued by OFAC is General License 46, which was later replaced by General License 46A with a minor modification. This broad authorization enables established U.S. entities to engage in certain transactions related to Venezuela’s oil, gas, and diluents. The issuance of these General Licenses underscores the U.S. government’s efforts to provide targeted sanctions relief that supports the recovery and growth of Venezuela’s oil and gas industry.

Overall, the recent actions by OFAC represent a significant development in the ongoing sanctions landscape affecting Venezuela. By gradually easing restrictions on the country’s oil and gas sector, the United States is signaling its support for the revitalization of Venezuela’s key industry. As the phased approach to sanctions relief continues, it will be essential for companies operating in or considering investments in Venezuela to closely monitor developments and ensure compliance with the evolving regulatory framework.