Washington: The United States has issued licenses to allow oil and gas production in Venezuela. The U.S. Treasury Department has approved a general permit to support oil and gas exploration and production in Venezuela following the ousting of the country's leader by the U.S. military last month.
According to Thai News Agency, the general license granted allows the provision of goods, technology, software, or services essential for the exploration, development, or production of oil and gas in Venezuela. It mandates that contracts with the Venezuelan government or PDVSA, the state-owned energy company, adhere to U.S. legal requirements. Disputes must be settled in the U.S., and payments to sanctioned entities must be directed into U.S.-regulated funds. However, the license restricts the formation of new joint ventures or entities for oil and gas exploration or production in Venezuela.
The U.S. government relaxed sanctions on Venezuela's energy sector after a special operations team apprehended Nicol¡s Maduro, extraditing him to the U.S. earlier in January. Previously, licenses were issued to facilitate various aspects of oil handling in Venezuela. U.S. Energy Information Administration reports suggest that Venezuela's crude oil output could rise by up to 20 percent in the coming months from the current level of approximately 1 million barrels per day.
The interim Venezuelan government, led by Delcy Rodrguez, secured a $2 billion oil supply deal with the United States, significantly enhancing oil exports that had dropped to low levels in December 2025 due to the U.S. blockade. Following this, the U.S. developed a $100 billion strategy to rejuvenate Venezuela's oil industry. In late January, Venezuela's National Assembly passed reforms to oil laws, enabling foreign companies to participate in the production, export, and sale of oil within the country.