Commodities
US Issues Updated Venezuela Oil License, Broadening Scope for American Firms
The US has issued a revised general license allowing certain American companies to engage in transactions involving Venezuelan-origin oil and petrochemical products, the Treasury Department said on Wednesday.The Treasury said the new license replaces an earlier authorization and permits US entities to engage in activities, including lifting, exporting, selling, purchasing, transporting, and refining Venezuelan-origin crude oil and petrochemical products.The authorization covers transactions involving the Venezuelan government and state oil firm Petroleos de Venezuela as well as entities in which PDVSA holds a 50% or greater interest.The Department said the contracts must be governed by US state law or another specified jurisdiction, including the UK, France, or Singapore, and disputes must be resolved in those jurisdictions.The license also requires that payments to blocked persons be directed into "Foreign Government Deposit Funds" or other accounts designated by the US Treasury, rather than being made directly.The authorization includes shipping, logistics, marine insurance, and port services, as well as crude oil swaps and certain commercially reasonable product exchanges.However, the license excludes transactions involving entities linked to Russia, Iran, North Korea or Cuba, as well as any firms owned or controlled by Chinese entities in certain joint venture structures.