Home / Business and Economy / US Oil Firms Get Green Light for Venezuela Work
US Oil Firms Get Green Light for Venezuela Work
11 Feb
Summary
- US firms allowed to explore and produce oil in Venezuela.
- License permits geological mapping and reservoir analysis tasks.
- New joint ventures in Venezuela are not permitted.
The U.S. government has issued a general license enabling oilfield-service companies to engage in oil and natural gas operations in Venezuela. This move represents a step towards easing sanctions and rebuilding the country's crude infrastructure.
This new license specifically permits U.S. firms to undertake crucial tasks such as geological mapping and reservoir analysis. These activities are designed to augment the commencement of oil production. However, it is important to note that the license does not authorize the establishment of new joint ventures within Venezuela.
Companies seeking to operate in the country will be required to submit detailed plans to the State Department and Department of Energy. This development follows earlier steps taken by Washington to encourage U.S. companies to revive output from Venezuela's substantial crude reserves.
