US allows oil majors to resume Venezuela operations
South China Morning Post
by ReutersFebruary 13, 2026
AI-Generated Deep Dive Summary
The U.S. has significantly relaxed sanctions on Venezuela's energy sector by issuing two general licenses that allow major global oil companies like Chevron, BP, Eni, Shell, and Repsol to resume operations in the country. This move marks the biggest easing of sanctions since the removal of President Nicolas Maduro last month. The permits enable these companies to continue their existing projects and negotiate new contracts for investments in Venezuela's oil and gas sector. However, the authorisation explicitly prohibits transactions with companies from Russia, Iran, or China, as well as entities linked to those nations.
The Treasury Department’s Office of Foreign Assets Control (OFAC) granted the licenses under specific conditions. For instance, royalties and Venezuelan taxes must be channelled through the U.S.-controlled Foreign Government Deposit Fund, ensuring that financial flows remain under American oversight. This provision underscores the U.S. aim to maintain influence over Venezuela's energy sector despite allowing foreign companies to operate.
The decision reflects a strategic shift in U.S. policy toward Venezuela, likely aimed at stabilising the South American nation and reducing global oil prices by increasing production capacity. It also signals an effort to strengthen ties with key partners while limiting engagement with adversarial powers like Russia and China. As Latin America braces for potential political and economic changes, this move could reshape the region's energy landscape and U.S. relations with its neighbours.
For readers interested in global affairs, this development highlights the complex interplay of geopolitics, energy markets, and international sanctions. It raises questions about the long-term implications for Venezuela’s economy, regional stability, and the broader impact on global oil supply and demand dynamics.
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Originally published on South China Morning Post on 2/13/2026