US prepares general license to ease some Venezuela oil sanctions

US officials are preparing to issue a general license that would lift certain sanctions on Venezuela’s energy sector, moving away from previous plans to grant individual exemptions to companies operating there.

The decision aims to facilitate a $2 billion oil supply deal between Caracas and Washington and support a $100 billion reconstruction plan for Venezuela’s oil industry.

Major partners and customers of Venezuela’s state oil company PDVSA, including Chevron, Repsol, ENI, and Reliance Industries, have applied for individual licenses to expand oil output and exports. The high volume of applications has slowed investment and export progress.

Previously, broad licenses allowed companies to export Venezuelan oil, but these were revoked, significantly reducing exports. Recent limited licenses have been issued to companies such as Vitol and Trafigura for specific shipments.

A general license is expected to streamline approvals, boost production, support domestic refining, and help restore infrastructure. Proposed legislative reforms in Venezuela are also intended to encourage investment and expand oil and gas output.

US and Venezuelan officials have not provided immediate comments on the developments.