U.S. Eases Sanctions to Boost Venezuelan Oil Production

The U.S. Treasury Department issued a crucial general license on Tuesday, enabling U.S. entities to provide goods, technology, and services for oil and gas exploration in Venezuela. This could significantly boost Venezuela's oil output, which currently stands at nearly 1 million barrels per day.

According to the new license, any agreements with the Venezuelan government or state energy company PDVSA must adhere to U.S. legal standards, with any disputes resolved within the United States. Additionally, payments to sanctioned entities are to be directed into a U.S.-overseen fund.

The license facilitates transactions necessary for maintaining oil and gas operations and implies future foreign investments. Washington has also prepared a $100 billion reconstruction plan for Venezuela’s oil industry, aiming to attract more foreign producers and expand the sector.