Venezuela’s state-run oil company, Petróleos de Venezuela (PDVSA), has begun refusing to sell crude oil to companies lacking individual licenses from the United States government, a move that is constricting exports and exacerbating storage capacity issues, according to four sources within companies seeking to purchase Venezuelan oil.
The shift in policy, implemented over the past two weeks, reflects a growing caution within PDVSA regarding the interpretation of U.S. Sanctions, despite a general license issued by the Trump administration in January intended to broaden energy trade. Sources indicate that the broad scope of the general license has created ambiguity regarding permissible transactions, leaving companies uncertain about compliance.
“The general license hasn’t facilitated trade as much as needed,” one source told Reuters. “Its broad nature has left many conditions open to interpretation, raising questions about what is allowed and what isn’t.”
PDVSA executives are reportedly seeking specific guidance from the U.S. Government on which companies it can transact with and clearer commercial terms to track shipments and secure revenue. The reluctance of PDVSA to proceed without explicit U.S. Approval underscores the continued influence of American sanctions on Venezuela’s oil industry, even after the capture of Nicolás Maduro last month prompted a relaxation of some restrictions.
The tightening of PDVSA’s sales criteria is also being compounded by reluctance within the U.S. Financial sector to process transactions related to Venezuelan oil. Reuters reported that some banks are hesitant to risk processing payments under the current licensing framework, or are unsure if the activity is fully authorized, leading to increased due diligence requirements.
This financial caution disproportionately impacts smaller market players, while larger trading firms like Trafigura and Vitol – which already possess specific licenses – have the cash flow to operate independently of bank credit.
The U.S. Government maintains It’s processing license applications expeditiously. “The President’s team is working tirelessly to address requests from oil and gas companies,” stated Taylor Rogers, a spokesperson, to Reuters.
Recent actions by the Office of Foreign Assets Control (OFAC) suggest a continued, albeit cautious, easing of restrictions. OFAC has issued additional licenses allowing companies including Chevron, BP, Eni, Shell, and Repsol to expand operations in Venezuela. However, the Treasury Department has emphasized the need for institutions to adhere to guidelines to prevent financial irregularities.
PDVSA is preparing to resume function at its joint ventures under terms similar to licenses granted during the Biden administration, once President Trump reinstates authorizations for its partners to operate and export oil, according to sources familiar with the matter. Washington is reportedly preparing new authorizations for key partners, beginning with Chevron.
