The Office of Foreign Assets Control (OFAC) of the U.S. Department of Treasury has issued General License No. 50A, which authorizes specific transactions related to the oil and gas sector operations in Venezuela, fully replacing General License No. 50 issued days earlier.
The new license permits activities that would normally be prohibited by the sanctions regime against Venezuela, including operations with the Venezuelan government and Petróleos de Venezuela S.A. (PDVSA), as long as they are connected to specific authorized companies and meet strict legal and financial requirements.
Key Conditions of the License
General License 50A stipulates that:
- Contracts must be governed by U.S. laws, and dispute resolution mechanisms must occur within U.S. jurisdiction.
- Payments to blocked persons—except for local taxes, fees, or permits—must be directed to funds designated by the U.S. Department of Treasury.
- Oil taxes or royalties must also be deposited in those official funds.
Additionally, companies operating under this license are required to submit detailed reports to U.S. authorities identifying the involved parties, type of transaction, values, dates, and payments to the Venezuelan state. Reports must be sent within ten days of the first operation and then every 90 days while activities continue.
Restrictions and Exclusions
The authorization does not allow:
- Payments in gold, cryptocurrencies, or non-commercial financial conditions.
- Transactions with actors linked to Russia, Iran, North Korea, Cuba, or China.
- The unblocking of previously sanctioned assets or operations with blocked vessels.
These limitations indicate that, despite selective relief, the overall framework of U.S. sanctions against Venezuela remains in effect and under strict oversight.
Included Companies
Among the entities contemplated in the license annex are major international energy companies such as BP, Chevron, Eni, Repsol, Shell, and Maurel & Prom, along with their subsidiaries.
License 50A is part of a series of recent measures through which Washington has partially eased sanctions to facilitate specific energy operations in Venezuela, amid a reconfiguration of the policy towards the country’s oil sector.
However, the Treasury stressed that this authorization does not exempt compliance with other federal regulatory requirements, including the controls of the Department of Commerce.