Big oil gets the cautious green light for Venezuela

The Trump administration has issued licenses allowing a select group of Western energy companies to resume oil and gas operations in Venezuela, marking a significant shift in U.S. sanctions policy as Washington seeks to revive the country’s oil-dependent economy, Bloomberg writes. 

The permits authorize BP, Chevron, Eni, Repsol and Shell to engage in transactions with state-run Petróleos de Venezuela SA under contracts governed by U.S. law and reviewed every 90 days. Chevron, already operating under a restricted license, will be allowed to expand its footprint, while other firms had previously seen permissions revoked as pressure mounted on Caracas. 

Venezuelan leaders have eased government controls and overhauled energy laws to attract investment, but risks remain. 

Some oil majors remain cautious, citing unpaid debts, past nationalizations and political uncertainty despite Venezuela’s vast reserves.

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