U.S. Says Venezuela Oil Deals Must Follow Its Laws

The United States has issued a new license allowing American goods, technology, and services to support oil and gas exploration and production in Venezuela. It marks a major policy shift after years of strict sanctions on the South American country’s energy sector.

Announced by the U.S. Treasury Department, the license permits oil companies to send equipment and technology to Venezuela’s state‑run oil company, PDVSA, to assist with drilling, repairs, and production.

There are restrictions, however. The license does not allow new joint ventures between foreign companies and the Venezuelan government. Instead, it covers transactions needed to maintain and repair existing operations. Contracts must follow U.S. law, disputes must be settled in U.S. courts, and payments to sanctioned entities must go through U.S.‑controlled funds.

Venezuela currently produces close to one million barrels of oil per day. U.S. officials say output could rise by as much as 20% if operations expand under the new rules.

The decision follows a broader easing of sanctions after U.S. forces captured President Nicolás Maduro on January 3. The interim government, led by Delcy Rodríguez, has already signed a $2 billion oil supply deal with the U.S.