Enduringly ‘cold’ relations between Washington and Caracas do not appear, at this time, to be impeding the United States’ preparations to commence the process for the issuing of limited licenses to oil companies possessing existing oil production and assets in the country over those now seeking to enter the country’s oil sector for the first time, according to a May 16 Reuters report. The U.S. is preparing to prioritize issuing limited licenses to operate in Venezuela to companies with existing oil production and assets over those seeking to enter the sanctioned OPEC nation for the first time, two people close to the discussions said.
The development, reportedly, has as its primary intention, creating openings that seek to encourage companies that have had oil and gas-related projects frozen under a long-standing US sanction regime to both “open new tabs” and, as well, to expand operations as the means through which “to expand operations, recoup pending debt and add oil to global markets.” Among the major global oil companies that are expected to take advantage of this opening are Italy’s Eni (ENI.MI), and Spain’s Repsol (REP.MC), with a view to recouping debts owed those companies by Venezuela and increase the volumes of oil on the global market. Washington, however, is reportedly mindful to avoid firms with no prior investments in Venezuela with a view to placing limits on the extent of the revenue which the Maduro administration can secure from the country’s oil industry.
