WASHINGTON, CARACAS – The United States has slightly loosened sanctions on Venezuela’s energy sector, granting general licenses that allow several large international oil companies, including BP, Chevron, Repsol, Shell and Eni, to resume certain oil and gas activities in the OPEC member state under strict conditions.
The move, effective February 18, 2026, marks the most significant relaxation of U.S. restrictions on Venezuelan oil since the sanctions regime tightened years earlier, and comes amid broader geopolitical shifts following the capture of former Venezuelan President Nicolás Maduro.
Under the new arrangement, companies are permitted to operate in Venezuela’s oil and gas sector and negotiate contracts with the state oil company Petróleos de Venezuela, S.A. (PDVSA), provided they continue to comply with remaining U.S. sanctions and ensure that royalty and tax payments do not go directly to the Venezuelan government. Instead, such payments must be routed through a U.S.-controlled foreign government deposit fund, maintaining oversight and restrictions on funds movement.
However, significant limitations remain. Transactions involving designated individuals or entities under U.S. sanctions are still prohibited, as are payments made using Venezuela’s state-backed digital currency, the petro.
The general licenses also allow companies to negotiate new investments in Venezuelan energy projects, though final contracts require separate approvals from the U.S. Treasury’s Office of Foreign Assets Control (OFAC).
Repsol’s Outstanding Debt to PDVSA
Meanwhile, Spanish energy giant Repsol has disclosed that it is owed about €4.55 billion (roughly $5.37 billion) by PDVSA, largely related to past oil deliveries and loans. Because of the uncertainty over repayment, Repsol has already provisioned a large portion of this amount as a potential loss in its financial accounts.
Repsol has been a major partner of PDVSA for decades and intends to expand its operations in Venezuela under the new sanctions framework, but the company continues to face challenges recovering outstanding debts and securing stable long-term arrangements.
Mixed Market Response and Risks
The partial easing of sanctions has sparked optimism in some energy markets, with foreign firms expressing interest in expanding Venezuelan production. Companies such as French oil firm Maurel & Prom have indicated they are now fully mobilized to resume activity following updated licensing.
At the same time, analysts caution that structural issues—including aging infrastructure, political uncertainty, and legal complexities—mean that restoring Venezuela’s oil sector to its former capacity will be a long and challenging process.