In the weeks since U.S. special forces’ capture of Nicolás Maduro, the Trump Administration has worked to bring Venezuela’s energy industry back online, including through the issuance of various general licenses by the U.S. Department of the Treasury’s Office of Foreign Assets Control (“OFAC”). 

This alert explores developments between the United States and Venezuela, focusing particular attention on recently issued OFAC general licenses and their impact on U.S. and foreign businesses engaged in transactions relating to Venezuela’s energy industry. 

Background 

For more than twenty years, the United States has imposed some measure of sanctions against Venezuela, which were substantially expanded starting in 2015. In January 2019, in the wake of the disputed re-election of Maduro as president of Venezuela the year prior, OFAC designated Venezuela’s state-owned oil company, Petróleos de Venezuela, S.A. (“PdVSA”) on its List of Specially Designated Nationals and Blocked Persons (“SDN List”), thereby subjecting PdVSA to a U.S. asset freeze, cutting off PdVSA from all transactions and dealings with U.S. persons, and exposing non-U.S. persons to secondary sanctions risks to the extent that the U.S. government determined they provided material support to PdVSA. Later that year, President Trump signed Executive Order (“EO”) 13884, dubbed the “maximum pressure” policy, blocking all property and interests in property of the Government of Venezuela. 

These measures had the effect of severely restricting transactions with all businesses owned 50 percent or more by PdVSA or the Venezuelan government, including much of Venezuela’s oil and gas industry. This effectively put Venezuela’s oil and gas industry out of bounds for U.S. persons, with OFAC occasionally issuing (and then revoking or allowing to lapse) certain general licenses affording targeted sanctions relief in response to developments in the U.S.-Venezuela relationship. In addition, a number of European shipowners were sanctioned during this period for carrying Venezuelan crude exports. While those measures were rolled back, the episode sent a strong message regarding the escalating risks to shipowners of Venezuelan energy trade.

In late 2025, in an effort to “target[ ] Nicolás Maduro’s illegitimate regime in Venezuela,” OFAC designated on the SDN List various companies and vessels operating in the trade of Venezuelan oil, as well as persons affiliated with Maduro.  Concurrent with those efforts, President Trump announced a “TOTAL AND COMPLETE BLOCKADE OF ALL SANCTIONED OIL TANKERS going into, and out of, Venezuela.”  (Capitalized text in original.)  

Washington’s campaign against the Maduro regime came to a head on January 3, 2026, with the apprehension of Maduro and his wife, Cilia Flores, and their transport to New York for trial. Following Maduro’s capture, President Trump welcomed U.S. oil and gas executives to the White House for discussions concerning how “American companies can help rapidly rebuild Venezuela’s dilapidated oil industry,” and signed EO 14373, committing the United States to safeguard Venezuelan oil sales revenue from judicial process by persons with claims against Venezuela. In the current context, this mechanism applies to funds owed to PdVSA from its sales of oil and gas and that are placed into the U.S.-administered Foreign Government Deposit Funds described below. 

Almost immediately, the White House, the U.S. Department of Energy, and the U.S. Department of the Treasury began working on agreements and specific licenses for a small group of leading energy and trading companies to resume Venezuelan oil exports. The first cargoes reportedly began moving less than two weeks later. 

Demonstrating an all-of-government approach to re-establishing the Venezuelan oil trade, in recent weeks, leaders from the U.S. Department of State and the U.S. Department of the Treasury have detailed U.S. plans to further facilitate sales of Venezuelan oil and, on February 11, U.S. Secretary of Energy Chris Wright traveled to Caracas to tour oil-producing facilities with acting Venezuelan president Delcy Rodríguez. During remarks at the Miraflores Palace, Secretary Wright emphasized that the United States had been working “7 days a week to issue licenses,” presumably in an effort to “drive a dramatic increase in Venezuelan oil production, in Venezuelan natural gas production, [and] in Venezuelan energy production[.]”  Notably, President Trump has indicated that he too plans to travel to Venezuela, although the date of such travel has yet to be announced.   

OFAC General Licenses and Related Frequently Asked Questions (“FAQ”) Guidance

In late January 2026, OFAC authorized certain transactions with the Government of Venezuela, PdVSA, and entities owned 50 percent or more by PdVSA (the “PdVSA Entities”).  The new general licenses authorize a range of activity with Venezuela’s oil sector and seek to encourage U.S. companies to re-engage in Venezuela.  While further licenses are expected, the following include the most recent efforts:  

General License No. 46A – Authorizing Certain Activities Involving Venezuelan-Origin Oil 

General License (“GL”) 46A, issued February 10, authorizes “established U.S. entities” to undertake transactions “ordinarily incident and necessary to the lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery or transportation of Venezuelan-origin oil,” subject to certain restrictions. GL 46A superseded a nearly identical authorization, GL 46, which OFAC issued on January 29.

Authorized Transactions 

• FAQ 1226 provides that GL 46A applies to transactions involving crude oil and petroleum products, as defined by the U.S. Energy Information Administration (“EIA”), including petroleum coke, flexicoke, gasoline, and asphalt. 
• FAQ 1229 defines the term “established U.S. entity” as “any entityorganized under the laws of the United States or any jurisdiction within the United States on or before January 29, 2025.”
• FAQ 1230 provides that “[n]on-U.S. persons may engage in transactions or provide services that are ordinarily incident and necessary to the established U.S. entity’s transactions authorized by” the GL.  OFAC goes on to provide the following examples of such authorized activity by non-U.S. persons:
  • providing transportation and logistics services to an established U.S. entity for the export of Venezuelan-origin oil;
  • providing marine insurance to vessels chartered by established U.S. entities to transport Venezuelan-origin oil;
  • financing of related cargoes or receivables;
  • leasing storage facilities for Venezuelan-origin oil purchased by an established U.S. entity; and
  • contracting with established U.S. entities for repair or maintenance services of infrastructure necessary to effectuate the export of oil from Venezuela.
• FAQ 1235 explains that GL 46A permits downstream trading activities of Venezuelan-origin oil so long as blocked entities do not maintain an interest—including any future or contingent interest—in the oil.

Prohibited Transactions 

• Parties may not transact with:
  • persons located in or organized under the laws of Russia, Iran, North Korea, Cuba, or any entity owned or controlled by, or in a joint venture with, such persons; as well as
  • U.S. or Venezuelan entities that are owned or controlled by, or in a joint venture with, persons located in or organized under the laws of China.
• As explained in FAQ 1228, GL 46A does not authorize oil exploration activities, such as geological surveys or drilling, or negotiations with the Government of Venezuela or PdVSA for new investment activities. These types of activities are authorized in GL 48, discussed below.
• Transactions involving blocked vessels are expressly prohibited.

Contractual Considerations 

• In a somewhat novel approach to OFAC General Licenses, GL 46A mandates that all contracts between established U.S. entities and the Government of Venezuela, PdVSA, and PdVSA Entities must be governed by U.S. law and contain U.S. dispute resolution clauses.  This requirement does not extend to contracts between established U.S. entities and parties providing ancillary or support services or to downstream trading activities.  
• All contracts between established U.S. entities and the Government of Venezuela, PdVSA, and PdVSA Entities must contain “commercially reasonable” terms (i.e., terms “consistent with prevailing market and industry standards”) and cannot involve debt swaps or payments in gold or other digital currency. 
• Payments to blocked persons, excluding local taxes, permits, or fees, must be made into the Foreign Government Deposit Funds established in EO 14373 or any other account authorized by the U.S. Department of Treasury. Federal taxes to blocked persons, royalties, and fixed per-barrel production levies shall also be deposited into the Foreign Government Deposit Funds account. See FAQ 1237.

Reporting Requirements 

• Parties who export, reexport, sell, resell, or supply Venezuelan-oil obtained under authority of GL 46A to any country other than the United States must provide detailed reports to the U.S. Department of State (“DOS”) and the U.S. Department of Energy (“DOE”) which identify (i) all parties involved in the transaction, (ii) the scope of the transaction (i.e., quantities, values, and countries of ultimate destination), (iii) the date of the transaction, and (iv) an accounting of taxes, fees, and other payments provided to the Government of Venezuela.  GL 46A requires that these reports be submitted no later than ten (10) days after “execution” of the first transaction and every 90 days thereafter. 

General License No. 47 – Authorizing Sale of U.S.-Origin Diluents to Venezuela 

On February 3, OFAC issued GL 47, authorizing the sale, storage, transportation, and other export-related activities of U.S.-origin diluents to Venezuela, subject to many of the contractual considerations and restrictions contained in GL 46A. 

Parties that export or otherwise sell or supply U.S.-origin diluents pursuant to GL 47 must provide detailed reports to DOS and DOE no later than ten (10) days after the “execution” of the first transaction and every 90 days thereafter. 

Relatedly, on February 10, OFAC issued Venezuela GL 30B, “Authorizing Certain Transactions Necessary to Port and Airport Operations,” which removes the prohibition in GL 30A regarding transactions or activities related to the exportation or reexportation of diluents to Venezuela. GL 30B broadly authorizes payments that are ordinarily incident and necessary to operations or use of ports and airports in Venezuela, now including port fees and customs duties for activities authorized under Venezuela GLs 46A, 47, and 48 (as explained in FAQ 1236). 

General License No. 48 – Authorizing the Supply of Certain Items and Services to Venezuela

On February 10, OFAC issued GL 48, authorizing the provision from the United States or by U.S. persons of “goods, technology, software, or services, for the exploration, development, or production of oil or gas in Venezuela,” subject to many of the contractual considerations and restrictions contained in GL 46A.

Parties that export or otherwise sell or supply goods, technology, software, or services pursuant to GL 48 must provide detailed reports to DOS and DOE no later than ten (10) days after the “execution” of the first transaction and every 90 days thereafter.

General License No. 49 – Authorizing Negotiations of and Entry Into Contingent Contracts for Certain Investment in Venezuela 

GL 49, issued February 13, authorizes transactions “related to the negotiation of and entry into contingent contracts for new investment in oil or gas sector operations in Venezuela” so long as contract performance is made expressly contingent upon receipt of OFAC authorization.  Similar to the aforementioned general licenses, GL 49 restricts transactions with certain persons and entities, including those located in Russia, Iran, North Korea, Cuba, China, or “any entity that is owned or controlled by or in a joint venture with such persons.”  

General License No. 50 – Authorizing Transactions Related to Oil or Gas Sector Operations in Venezuela of Certain Entities 

Issued concurrently with GL 49, GL 50 authorizes transactions “related to oil and gas sector operations in Venezuela” of five listed U.S. and non-U.S. oil majors and their subsidiaries, subject to many—but not all—of the restrictions set forth in GL 46A. That license was updated on February 18 to add a sixth authorized company in GL 50A. 

Parties that engage in transactions pursuant to GL 50 must provide detailed reports to DOS and DOE no later than ten days after the “execution” of the first transaction and every 90 days thereafter.

Takeaways and Considerations 

• OFAC has clarified in FAQ 1234 that financial institutions may, in connection with normal course due diligence, “rely on the statements of [their] customer” that a contemplated transaction complies with GL 46A unless the financial institution “knows or has reason to know otherwise.”  Absent guidance to the contrary, it is not unreasonable for financial institutions to apply the same standard in verifying that transactions contemplated under GLs 47-50 are compliant with U.S. law.   As Trump Administration officials continue to negotiate with acting Venezuelan president Rodríguez, it is possible that the United States will reopen additional lines of trade with Venezuela.   
• The situation is fast-moving and dynamic, and OFAC could issue new authorizations, or expand or curtail existing authorizations, in the coming weeks in response to developments in U.S.-Venezuela relations.
• It is important to note that Trump Administration statements and media reports indicate that the administration may be taking a flexible approach to the issuance of specific OFAC licenses, and industry participants may be able to obtain authorizations in the near to medium term. 
• While the Trump Administration had been depositing the monies collected from the sale of Venezuelan oil into a U.S. government-controlled bank account in Qatar, Energy Secretary Chris Wright has advised that an account at the U.S. Department of Treasury will hold future deposits. OFAC is expected to provide the parties to any authorized transaction with instructions on where the funds must be deposited.
• The introduction of a “commercial reasonableness” standard in GL 46A creates a new layer of regulatory uncertainty for Venezuelan transactions, given the lack of certainty as to what standards might be relevant, and how that reasonableness requirement could be applied in the future. 

George T. Boggs contributed to this article