U.S. Lifts Sanctions, Revitalizes Venezuela's Energy Sector

The U.S. has eased sanctions on Venezuela, allowing major energy companies to operate there and negotiate new investments in oil and gas. This decision follows the capture of President Maduro and aims to support Venezuela's economic recovery. Additional authorizations may be issued to promote regional energy security.

In a significant policy shift, the United States has eased sanctions on Venezuela's beleaguered energy sector, issuing crucial licenses that pave the way for global energy titans to operate in the country. This strategic move aims to attract fresh investments following the ousting of President Nicolas Maduro last month.

The new authorization allows companies like Chevron, BP, and Shell to continue and expand their oil and gas operations within the country, ensuring payments to the U.S.-controlled Foreign Government Deposit Fund. This approach is designed to foster economic recovery in Venezuela and secure regional energy stability. However, transactions involving Russia, Iran, or China remain prohibited.

The U.S. Treasury Department's decision coincides with an overhaul of Venezuela's oil legislation, which enhances autonomy for foreign operators. While Chevron has welcomed these developments, energy giants such as Exxon ​are cautiously re-evaluating their stance, given past expropriations. The U.S., meanwhile, asserts control over Venezuela's oil revenue amidst ongoing political transitions.

(With inputs from agencies.)