The U.S. has eased sanctions on the Venezuelan oil industry. The U.S. Treasury has authorized transactions with the government in Caracas and the state company PDVSA. The license pertains to the sale, transportation, and processing of oil.
The Venezuelan Parliament, in accordance with U.S. requirements, passed a law opening the oil sector to private investors. The reform is a "historic leap," said acting President of Venezuela Delcy Rodriguez on Thursday, January 29, in Caracas.
Previously, only joint ventures associated with the state oil company PDVSA could operate in the country's oil sector, with the latter always retaining a controlling stake.
Now, private companies will be able to independently extract and sell oil without the need to create a joint venture with PDVSA, AFP explained.
A single extraction fee of 15 percent and a maximum licensing fee of 30 percent of gross income will be introduced. Tax rates will be established based on the profitability and volume of investments in specific projects.
Washington Eases Sanctions on Venezuelan Oil Industry
Against this backdrop, the U.S. has eased sanctions on the Venezuelan oil industry, Reuters reported. The U.S. Department of the Treasury issued a general license for transactions with the government in Caracas and the state company PDVSA. The license pertains to the sale, transportation, and processing of Venezuelan oil.
Sale of Venezuelan Oil Under U.S. Control
The resumption of Venezuelan oil sales followed a U.S. military operation in which former Venezuelan President Nicolas Maduro was captured in early January.
After the resumption of exports under American supervision, the state oil company PDVSA reportedly began to increase production.
The U.S. has already started selling Venezuelan oil as part of a new agreement with Caracas. Revenues from the first transactions amounting to about $500 million are being placed in bank accounts under U.S. administration control, a source familiar with the situation said. The total volume of the agreement is estimated at $2 billion, with the main account, according to the source, opened in Qatar as a neutral platform for settlements.
