Chevron, Eni, Repsol, and Shell have struck energy agreements under the favorable conditions of the recent legislative reform. (Reuters)
Caracas, March 20, 2026 (venezuelanalysis.com) – The US Treasury Department has issued a new sanctions waiver as the Trump administration seeks to deepen US control over Venezuela’s oil sector.
General License 52 (GL52), published on Wednesday, authorizes US entities to engage in transactions with Venezuelan state oil company PDVSA under conditions that limit Venezuelan sovereignty.
An updated FAQ from the Treasury’s Office of Foreign Assets Control clarified that the exemption allows US companies to engage in activities related to the exportation of Venezuelan-origin oil products, export diluents and inputs to Venezuela as well as enter into new contracts for oil and gas production.
However, in line with recent US licenses, GL52 mandates that all tax, royalty, and dividend payments be made into US Treasury-controlled accounts.
Following the January 3 US military strikes and kidnapping of Venezuelan President Nicolás Maduro, the Trump administration has taken control over Venezuelan crude exports while imposing conditions favorable to Western energy conglomerates.
Thus far, Washington has returned US $500 million out of an initial January deal worth $2 billion. US authorities have also confirmed Venezuelan imports of US-manufactured medicines and medical equipment. Trump officials had vowed that US energy revenues could only be used for purchases from US suppliers and that Caracas would need to submit a “budget request” to access its funds.
The White House issued GL52 amid soaring energy prices caused by the US and Israeli war against Iran. Tehran has responded to massive bombings by targeting US military assets in the region and closing the strategic Strait of Hormuz.
Last week, the US Treasury amended licenses to allow US imports of fertilizers from Venezuela, as well as repair works in the South American country’s electric grid. Venezuela’s electrical infrastructure remains in a precarious state after years of US sanctions, and expanded power capacity is a precondition for recovery of the oil industry.
Despite the broadened waivers for corporations hand-picked by the White House to engage with Venezuela, PDVSA and its subsidiaries remain under financial sanctions, while third-country firms risk secondary sanctions should they enter into agreements without a US Treasury special license.
In late January, Venezuelan authorities approved a pro-business overhaul of the country’s Hydrocarbon Law, granting private companies reduced fiscal responsibilities, increased control over production and exports, and the possibility of taking disputes to international arbitration bodies.
Chevron and Shell, with US Treasury approval, were the first companies to take advantage of the new incentives. Chevron’s Petropiar joint venture with PDVSA was granted a new 500 square-kilometer bloc to drill for extra-heavy crude in the Orinoco Oil Belt, while Shell is set to take over light and medium crude and natural gas operations in the eastern state of Monagas.
Last week, European energy giants Eni and Repsol, who were also given the inside track by the White House, announced an agreement with the Venezuelan government for the development of the Cardón IV offshore natural gas project.
Eni and Repsol each own 50 percent stakes in Cardón IV, which has been in operation since 2009. Neither firm nor Caracas offered details on the renewed agreement, though both enterprises had lobbied for improved conditions and mechanisms to recoup accumulated debt due to US sanctions.
According to Bloomberg, ONGC Videsh (India), Maha Capital AB (Sweden), and J&F Investimentos (Brazil) are among the companies likely to receive special licenses for involvement in Venezuela’s oil sector as Washington seeks to counter rising crude prices. Nevertheless, analysts stress that the Venezuelan oil industry does not have the capacity to significantly ramp up output in the near future.
On March 11, the Trump administration formally recognized Acting President Delcy Rodríguez as Venezuela’s “sole authority,” days after Venezuela and the US reestablished diplomatic ties following a seven-year hiatus.
On Monday, Rodríguez appointed new executive boards for PDVSA’s US-based affiliates, including refiner CITGO. Asdrúbal Chávez, who held multiple roles in both PDVSA and CITGO since the 2000s, was picked as president of CITGO and its parent company, PDV Holding. At the time of writing, US authorities have not commented on the proposed new leadership for the companies, which had been run by the US-backed opposition since 2019.
CITGO is currently in the closing stages of a court-mandated auction that will see Venezuela lose ownership of its most prized foreign asset to address creditor claims against the country. The sale to Amber Energy, a subsidiary of vulture fund Elliott Management, is pending authorization from the US Treasury Department.
Edited by Lucas Koerner in Fusagasugá, Colombia.