The U.S. Treasury has issued a new general license allowing the export and sale of U.S. diluents to Venezuela to help produce exportable crude grades. The license explicitly permits processing payments from Venezuela's government and is the second broad authorization aimed at easing sanctions and reviving Venezuela's oil sector. It follows a separate license last week that allowed U.S. firms to handle, store and refine Venezuelan oil.
U.S. Treasury Authorizes Diluent Exports to Venezuela, Easing Sanctions on Oil Trade
An oil pumpjack and a tank with the corporate logo of state oil company PDVSA are seen in an oil facility in Lagunillas, Venezuela January 29, 2019. REUTERS/Isaac Urrutia
WASHINGTON, Feb 3 (Reuters) - The U.S. Treasury Department on Tuesday issued a new general license permitting the export and sale of U.S. diluents to Venezuela, according to a document shown to Reuters by an administration official. Diluents are light hydrocarbons used to blend with Venezuela's heavy crude so it can flow in pipelines and be processed into exportable grades.
The authorization is the second broad license from Washington aimed at easing sanctions and supporting efforts to revive Venezuela's oil sector. The document says the license explicitly allows the processing of payments from Venezuela's government for authorized transactions, a provision that removes a major financial barrier to commercial operations.
Context And Implications
Last week, Treasury issued a separate, broader license that permits U.S. companies to load, transport, store, sell and refine Venezuelan oil. Together, the two licenses signal a calibrated shift in U.S. policy toward facilitating the recovery of Venezuela's petroleum exports while maintaining oversight through licensing and compliance conditions.
The document was provided to Reuters by an administration official. The Treasury did not immediately respond to requests for comment.
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