US Treasury Issues General License 48, Expanding Authorization for Services and Supplies to Venezuela’s Energy Sector
WASHINGTON — The United States Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued General License 48, a significant regulatory update authorizing U.S. companies to supply specific items and services to Venezuela. This latest measure, announced late Tuesday, marks a continued expansion of permitted economic activities in the South American nation following recent shifts in U.S. sanctions policy.
General License 48 specifically authorizes U.S. persons and entities to engage in transactions related to the “supply of certain items and services” necessary for the maintenance, safety, and operational continuity of Venezuela’s energy infrastructure. The license permits oilfield service companies and contractors to return to the country to assess facilities, perform critical repairs, and supply equipment that had previously been restricted under the Venezuela Sanctions Regulations (31 C.F.R. Part 591).
The issuance of General License 48 follows a sequence of rapid regulatory adjustments by the Treasury Department in recent weeks. It comes shortly after the issuance of General License 46, which authorized established U.S. entities to engage in the lifting and exportation of Venezuelan-origin oil, and General License 47, which permitted the exportation of U.S.-origin diluents essential for processing Venezuela’s heavy crude.
According to the text of the new license, authorized activities include the provision of goods and services for the safety of personnel, the preservation of assets, and operations “ordinarily incident and necessary” to the exploration and production of oil and gas. However, OFAC has maintained certain restrictions, clarifying that the license does not authorize transactions with specific blocked persons outside of the energy sector or entities controlled by designated foreign adversaries.
Industry analysts interpret General License 48 as a critical “logistical bridge,” allowing U.S. firms to deploy the technical expertise and hardware required to revive Venezuela’s deteriorating energy grid and oil production facilities. “While General License 46 opened the door for trade, General License 48 provides the keys to the toolbox,” said an energy sanctions expert in Washington. “It allows the service providers—the engineers, the safety inspectors, and the equipment suppliers—to physically enter the market and begin the work of stabilization.”
The Treasury Department emphasized that U.S. persons participating in these transactions must comply with strict reporting requirements. Companies utilizing General License 48 are required to file reports with OFAC and the Department of State detailing their activities, ensuring that the expanded authorizations align with broader U.S. foreign policy objectives in the region.
This move aligns with the administration’s stated goal of supporting the restoration of Venezuela’s economic infrastructure while maintaining oversight of revenue flows. Markets have reacted cautiously but positively, with major U.S. energy services firms expected to initiate assessments of their Venezuelan assets in the coming days.
The General License 48 is effective immediately. OFAC has updated its Frequently Asked Questions (FAQs) to provide further guidance to the compliance community regarding the scope of “certain items and services” covered under this new authorization.
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