US Treasury Issues License Allowing Business With PDVSA

The United States Department of the Treasury issued a general license on Wednesday broadly authorizing U.S. companies to conduct business with Venezuela's state-run oil company, PDVSA. This action by the Trump administration aims to increase the global supply of oil and counter rising prices driven by conflict with Iran. The measure follows the capture of President Nicolas Maduro in January and subsequent law reforms that grant PDVSA partners greater autonomy.

The license facilitates core operations and sales but maintains restrictions on transactions involving Venezuelan bonds, U.S.-sanctioned companies, and firms from China, Russia, Iran, Cuba, and North Korea. Additionally, all payments must be directed to accounts controlled by the U.S. Treasury. Specific licenses are still required for the sale of PDV Holding.

These steps are part of a broader effort to attract $100 billion in investment over ten years. Potential permit recipients include J&F Investimentos and Maha Capital, a unit of ONGC Videsh. The U.S. previously granted licenses to companies such as Chevron, BP, Shell, and Eni. Despite these initiatives, analysts expect Venezuela's production to increase by a maximum of 300,000 barrels per day by 2026, adding to its current output of approximately 1 million barrels per day.