Calendar An icon of a desk calendar. Cancel An icon of a circle with a diagonal line across. Caret An icon of a block arrow pointing to the right. Email An icon of a paper envelope. Facebook An icon of the Facebook "f" mark. Google An icon of the Google "G" mark. Linked In An icon of the Linked In "in" mark. Logout An icon representing logout. Profile An icon that resembles human head and shoulders. Telephone An icon of a traditional telephone receiver. Tick An icon of a tick mark. Is Public An icon of a human eye and eyelashes. Is Not Public An icon of a human eye and eyelashes with a diagonal line through it. Pause Icon A two-lined pause icon for stopping interactions. Quote Mark A opening quote mark. Quote Mark A closing quote mark. Arrow An icon of an arrow. Folder An icon of a paper folder. Breaking An icon of an exclamation mark on a circular background. Camera An icon of a digital camera. Caret An icon of a caret arrow. Clock An icon of a clock face. Close An icon of the an X shape. Close Icon An icon used to represent where to interact to collapse or dismiss a component Comment An icon of a speech bubble. Comments An icon of a speech bubble, denoting user comments. Ellipsis An icon of 3 horizontal dots. Envelope An icon of a paper envelope. Facebook An icon of a facebook f logo. Camera An icon of a digital camera. Home An icon of a house. Instagram An icon of the Instagram logo. LinkedIn An icon of the LinkedIn logo. Magnifying Glass An icon of a magnifying glass. Search Icon A magnifying glass icon that is used to represent the function of searching. Menu An icon of 3 horizontal lines. Hamburger Menu Icon An icon used to represent a collapsed menu. Next An icon of an arrow pointing to the right. Notice An explanation mark centred inside a circle. Previous An icon of an arrow pointing to the left. Rating An icon of a star. Tag An icon of a tag. Twitter An icon of the Twitter logo. Video Camera An icon of a video camera shape. Speech Bubble Icon A icon displaying a speech bubble WhatsApp An icon of the WhatsApp logo. Information An icon of an information logo. Plus A mathematical 'plus' symbol. Duration An icon indicating Time. Success Tick An icon of a green tick. Success Tick Timeout An icon of a greyed out success tick. Loading Spinner An icon of a loading spinner.

US to ease sanctions on Venezuela, enabling cargoes to Europe

© Wil Riera/BloombergPetroleos de Venezuela SA (PDVSA) signage is displayed on a building in Puerto La Cruz, Anzoategui State, Venezuela. Photographer: Wil Riera/Bloomberg
Petroleos de Venezuela SA (PDVSA) signage is displayed on a building in Puerto La Cruz, Anzoategui State, Venezuela. Photographer: Wil Riera/Bloomberg

The Biden administration plans to ease sanctions on Venezuelan oil in a bid to bring more of the country’s crude to Europe.

The US will allow European companies still operating in Venezuela to divert more oil to the continent immediately while Chevron will be allowed to negotiate a resumption of operations in the country, according to a person familiar with the matter who spoke on condition of anonymity to detail the plans. The US-backed Venezuelan opposition supports the move, the person said.

The easing of penalties come as tightening global oil supplies send the cost of crude and fuels skyward, threatening to worsen already historic inflation. More barrels from Venezuela would help alleviate the supply crunch while also aiding Europe in weaning itself from Russian energy amid the superpower’s invasion of Ukraine. US benchmark crude fell on the news.

The move is meant to facilitate negotiations between the government of President Nicolas Maduro and the American-backed opposition, according to a second person who spoke on condition of anonymity. But it’s politically contentious, with some lawmakers arguing that the move only bolsters Maduro’s regime.

Italy’s Eni and Spain’s Repsol are the only major European oil producers with operations in the country. They are working with the Biden administration to divert Venezuelan oil bound for China to Europe, one of the people said.

While Chevron currently isn’t allowed to drill for or export oil from Venezuela, the resumption of talks with state-owned PDVSA paves the way for the San Ramon, California-based company to obtain a new license allowing it to resume operations. It also signals that Venezuelan oil may be coming to the US, one person said.

Venezuela Vice President Delcy Rodriguez confirmed that the US government authorized US and European oil companies to “negotiate and restart operations” in Venezuela, according to a post on her Twitter account.

The Biden administration will also remove Carlos Erick Malpica Flores, a former PDVSA treasurer and former Treasury secretary, from a sanctions list, one of the people said. Malpica Flores, the nephew of Maduros’ wife, Cilia Flores, was sanctioned in July of 2017 along with 12 other Venezuelans.

The easing of penalties comes after officials from President Joe Biden’s administration visited Caracas, ultimately securing the release of Americans who had been detained in the country.

Recommended for you

More from Energy Voice

Latest Posts