Treasury Issues General License 46 Expanding Venezuelan Oil Trading For US Companies
The United States Department of the Treasury has issued General License 46, effectively widening the scope for established U.S. energy firms to engage in the exportation, marketing, and logistical support of Venezuelan crude oil. Announced on January 29, 2026, the measure marks a significant shift in sanctions policy following the recent political transition in Caracas earlier this month. The Office of Foreign Assets Control (OFAC) stated that the authorization permits transactions ordinarily incident to the oil sector for entities organized under U.S. law prior to January 29, 2025.
Under the new framework, companies including Chevron, as well as potential entrants seeking to recover assets such as ConocoPhillips and Exxon Mobil, are authorized to resume activities necessary to lift and export petroleum products. The license specifically covers the arrangement of shipping and logistics services to facilitate the movement of Venezuelan-origin oil to Western markets. This policy adjustment follows a historic reform of Venezuela’s hydrocarbons law by the National Assembly, which aims to attract foreign investment by capping royalties and allowing private control over production and sales.
Background information indicates that this regulatory easing comes weeks after a U.S. military operation in early January 2026 resulted in the removal of Nicolás Maduro. The subsequent formation of a transitional government prompted Washington to recalibrate its “maximum pressure” campaign, originally instituted in 2019. The Biden and Trump administrations had previously utilized a mix of executive orders and specific licenses to manage the flow of Venezuelan oil, often restricting trade to debt repayment deals. The new general license replaces the bottleneck of individual waiver applications that had previously slowed industry re-engagement.
Objections to the move have emerged from various sectors. Environmental advocates argue that fast-tracking Venezuelan heavy crude production contradicts global climate commitments and locks the region into long-term fossil fuel dependency. Furthermore, legal and governance experts have raised concerns regarding the financial oversight mechanisms attached to the license. Proceeds from these oil sales are set to be deposited into restricted accounts—initially reportedly in Qatar before transitioning to U.S. jurisdictions—subject to U.S. audit to ensure funds benefit the Venezuelan people rather than serving political interests. Skeptics question whether this oversight structure is robust enough to prevent corruption or if it constitutes an overreach of U.S. authority over sovereign resources.
Market analysts note that while the license signals a potential increase in supply, immediate spikes in export volume are unlikely due to the decrepit state of Venezuela’s energy infrastructure. Decades of underinvestment and mismanagement require significant capital and time to repair refineries and pipelines before production can return to pre-sanction levels. The Treasury Department emphasized that strict prohibitions remain in place for transactions involving entities from Russia, Iran, and China, maintaining a geopolitical fence around the newly opened market.
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