50 companies apply for U.S. petroleum licenses in Venezuela

Following the expiration of the general U.S. license for operations in Venezuela's petroleum industry, up to 50 license applications have been submitted by companies seeking to operate in this South American country.

In mid-April, the U.S. Treasury Department announced that the broad general license, which had eased restrictions on petroleum and gas trade with Venezuela, would not be renewed because Caracas had failed to meet the conditions for holding competitive presidential elections. Instead, Washington committed to issuing individual licenses for companies in the petroleum industry.

Venezuela, which holds the world's largest proven crude oil reserves, has been under U.S. sanctions since 2019 following the re-election of Nicolás Maduro in a presidential election not recognized by most Western countries.

Licenses are essential for a wide range of energy activities, including investments, petroleum export and import permits, petroleum and gas exploration, contract negotiations, and payments.

French oil producer Maurel & Prom announced earlier this month that it had received one of these licenses to expand its business with Venezuela's state petroleum company PDVSA, but many other companies are still awaiting approval.

Reuters reported that Spanish company Repsol also received a U.S. license to continue and expand its joint petroleum and gas operations in Venezuela.

According to informed sources, under the U.S. State Department's directive to the Treasury, Washington intends to prioritize issuing licenses to companies that already have existing petroleum production and assets in Venezuela over those seeking to enter the South American country for the first time.

Francisco Palmieri, the official responsible for Venezuelan affairs, said in an interview broadcast late Wednesday on the news website Efecto Cocuyo that there are 20 to 50 license applications. "We are gradually reviewing them," Palmieri added. He emphasized that the petroleum sector is crucial for reviving Venezuela's economy, but the most important issue is the July 28 elections.

Palmieri did not name the license applicants or comment on whether these requests would be approved.

Officials in Venezuela said the applications include up to 16 companies that have agreed to renew or expand their joint petroleum and gas ventures with PDVSA.

British petroleum giant BP announced that its negotiations with Venezuela regarding a joint offshore gas project with Trinidad and Tobago have stalled since the general licenses expired.

Palmieri also mentioned that diplomatic channels with the Maduro government, including discussions on migration and the economy, remain open. Regarding the elections, he stated that the U.S. expects broad participation and hopes that international groups will be allowed to monitor the process.