The United States has relaxed sanctions on Venezuela’s state-owned oil company, Petróleos de Venezuela.
The development was communicated by the US Treasury Department in a post on X, seen by Nairametrics.
The move comes amid the global oil shortage caused by the ongoing Middle East conflicts as the US-Israeli war against Iran rages on.
The war has led to the blockade of the Strait of Hormuz, a critical oil shipping route.
What the US is saying
A general licence issued on Wednesday by the US Treasury’s Office of Foreign Assets Control (OFAC) now allows the company to sell oil directly to US companies and on the global market.
- “Under President Trump’s leadership, the United States is working in partnership with the Government of Venezuela to reopen and restore Venezuela’s energy sector.
- “Today, the Treasury Department’s Office of Foreign Assets Control issued a license broadly authorising established US entities to engage in many types of transactions with Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (PdVSA), and its subsidiaries.
- “This license will benefit both the United States and Venezuela, while supporting the global energy market by increasing the supply of available oil.
- “It will also help incentivise new investment in Venezuela’s energy sector,” the statement read.
Backstory
US President Donald Trump had announced sanctions on Venezuelan oil, including a 25% tariff on potential buyers of Venezuelan crude imposed in 2025.
Trump accused Venezuela of hostility toward the US and alleged, without providing evidence, that the country had sent criminals, including gang members such as those from Tren de Aragua, to the U.S.
- The US had said in January that it would temporarily administer Venezuela following the capture of President Nicolás Maduro.
- U.S. prosecutors accused Maduro, among others, of leading or participating in a narco-terrorism conspiracy, alleging that he and senior Venezuelan officials worked with international drug trafficking groups to ship large quantities of cocaine to the United States.
The indictment claimed he collaborated with violent cartels and armed groups to facilitate trafficking.
According to the U.S. President, Washington’s focus would be stabilising the country and securing its energy infrastructure.
What you should know
Venezuela’s oil sales are currently being managed by Washington in US-controlled accounts, with proceeds disbursed to Delcy Rodríguez’s government.
- Under the Trump administration’s plan, proceeds from oil sales would be deposited into government-controlled accounts and used to fund programmes aimed at improving the welfare of the Venezuelan people.
- President Trump had reportedly encouraged major oil companies such as Chevron, ConocoPhillips, and ExxonMobil to take the lead in rebuilding Venezuela’s oil sector, which has deteriorated sharply over the past two decades.
Venezuela has the world’s largest proven oil reserves, estimated at about 300bn barrels.
