Beyond sanctions compliance, companies must also navigate the complex realities of operating within Venezuela or with its government.
The United States has recently taken action to expand opportunities for companies to participate in certain activities relating to the Venezuelan oil sector. Specifically, on January 29, 2026, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License No. 46, which authorizes companies to engage in a range of activities related to Venezuelan crude oil. As discussed below, pursuant to the General License, companies may now participate in the “lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan origin oil, including the refining of such oil” subject to specified conditions.
Background
Since 2005, the United States has imposed targeted sanctions on Venezuelan individuals and entities that have engaged in criminal, antidemocratic or corrupt actions. In November 2018, President Donald Trump issued Executive Order 13850. This executive order set forth a framework to block the assets of, and prohibit certain transactions with, any person determined by the Secretary of the Treasury to operate in designated sectors of the Venezuelan economy or to engage in corrupt transactions with the Maduro government. In January 2019, pursuant to the executive order, OFAC designated Petróleos de Venezuela S.A. (PdVSA) as operating in the oil sector of the Venezuelan economy, and the Secretary of the Treasury determined that the company was subject to U.S. sanctions. The executive order froze all property and interests in property of PdVSA subject to U.S. jurisdiction and prohibited U.S. persons from engaging in transactions with the company. OFAC also sanctioned Venezuela's Central Bank, National Development Bank and state-owned gold company Minerven. To date, OFAC has imposed sanctions pursuant to the executive order on 27 individuals, 95 entities and 57 vessels. Since mid-December 2025, the United States has seized several vessels transporting Venezuelan oil.
On January 6, 2026, following the extraction of former President Nicolás Maduro from Venezuela, President Trump stated that Venezuelan officials would turn over “sanctioned oil” to the United States reportedly worth some $3 billion. According to the U.S.-Venezuela energy deal, the United States would market and sell Venezuelan oil and deposit proceeds into "U.S.-controlled" accounts. Proceeds would be used for the benefit of the "American people and the Venezuelan people." Towards this end, OFAC issued new licenses for certain companies to engage in the trading of Venezuelan crude oil (e.g., Vitol and Trafigura).
New General License
On January 29, 2026, OFAC issued the General License. Pursuant to the General License, companies may now participate in the “lifting, exportation, reexportation, sale, resale, supply, storage, marketing, purchase, delivery, or transportation of Venezuelan origin oil, including the refining of such oil,” subject to specified conditions.
The General License includes several key requirements. To begin, contracts with the Venezuelan government or state-owned PdVSA must be governed by U.S. law and require that any disputes be resolved in the United States. In addition, monetary payments to sanctioned parties must flow into U.S.-controlled accounts established to manage Venezuelan oil proceeds, currently held in Qatar but expected to be relocated to the United States. Furthermore, the terms of the General License make clear that transactions involving sanctioned vessels or entities connected to China, Russia, North Korea, Iran or Cuba remain strictly prohibited. Provided that all of the requirements can be satisfied, companies may engage in any of the activities specified in the General License and need not obtain a specific license from OFAC.
Practical Considerations for Companies
For companies in the oil trading, logistics, refining and related sectors, this General License may present opportunities to participate in the Venezuelan oil sector without the delays associated with seeking specific OFAC licenses. However, companies should carefully review the General License and take all necessary actions to ensure compliance with its requirements. Practically, this means confirming that proposed transactions are limited to the specified oil-related activities, that contractual arrangements comply with the U.S. law and dispute resolution requirements, and that counterparties and vessels are not subject to sanctions or connected to prohibited jurisdictions. Companies should also establish internal procedures for directing any payments to sanctioned parties into the appropriate U.S.-controlled accounts and for maintaining documentation sufficient to demonstrate compliance.
Beyond sanctions compliance, companies must also navigate the complex realities of operating within Venezuela or with its government. The country’s legal and regulatory framework have historically been shaped by the 1976 and 2007 nationalizations, which imposed onerous requirements on foreign investment in the oil and gas sector. However, Venezuela's National Assembly has recently passed legislation that has been signed into law by acting President Delcy Rodríguez that will allow private companies, including foreign firms, more autonomy in the country's lucrative oil sector.
About Duane Morris
Duane Morris is closely monitoring developments in U.S. sanctions policy and the evolving commercial landscape in Venezuela. Attorneys in the firm’s International Practice and its Venezuela Task Force have considerable experience in assisting clients on a wide range of matters involving U.S. export controls and economic sanctions. Such assistance includes performing export control classification reviews; advising on the viability of proposed transactions; applying for and obtaining licenses and other kinds of export authorizations from OFAC, the Bureau of Industry and Security, and the Directorate of Defense Trade Controls; and developing, implementing and assessing trade compliance programs for companies.
Venezuela’s quickly evolving business landscape will be discussed in more detail during our upcoming webinar “Capitalizing on Opportunities for U.S. Businesses in an Evolving Legal and Commercial Landscape” on Tuesday, February 3, from 12:00 p.m. to 1:00 p.m. Eastern. This webinar will also feature uniquely experienced attorneys from the Venezuelan law firm of Travieso Evans Arria & Rengel. Registration is now open on the Duane Morris LLP website.
For More Information
If you have questions about this Alert, please contact Geoffrey M. Goodale, Hope P. Krebs, Thomas R. Schmuhl, Joseph T. Walsh, Raul Rangel Miguel, Laura M. González Alemán, any of the attorneys in our International Practice or the attorney in the firm with whom you are regularly in contact.
Disclaimer: This Alert has been prepared and published for informational purposes only and is not offered, nor should be construed, as legal advice. For more information, please see the firm's full disclaimer.