Since the January 3, 2026 capture of Venezuelan leader Nicolás Maduro, fast-moving discussions between the US and Venezuelan authorities are creating momentum around a shift in US sanctions policy concerning the sale and transportation of Venezuelan oil. As explained below, however, any participants in transactions subject to US jurisdiction would need to confirm compliance with existing US sanctions either through receipt of interpretive guidance or via a specific license issued by the US Department of the Treasury’s Office of Foreign Assets Control (OFAC) and recent reporting makes clear that a number of elements of the U.S. government are weighing in on this process.  We set out below a brief alert on the latest developments and items to remember from a US sanctions perspective.

Recent Reporting

• Following the capture of Maduro, a Reuters report released January 6, 2026 quoted two sources familiar with discussions between Venezuelan and U.S. officials discussing possible sale mechanisms for oil to flow from Venezuela to interested U.S. buyers, including an auction process and that, in order to manage the existing sanctions compliance issues, the U.S. could issue “licenses to PDVSA’s business partners that could lead to supply contracts.”   The report noted that in the past, PDVSA joint venture partners or customers had received licenses to have access to Venezuelan oil in order to refine or resell that oil to third parties.   Chevron is reportedly in similar talks to expand an existing license authorizing its operations in Venezuela.
• Likewise, on January 7, the Department of Energy released a “Fact Sheet” stating that it was working with the “Interim Venezuelan Authorities and private industry” to execute an anticipated sale of approximately 30-50 million barrels of oil and that such sales would continue “indefinitely.”  Notably, the Fact Sheet states that the United States “is selectively rolling back sanctions to enable the transport and sale of Venezuelan crude and oil products to global markets,” and that the US would also  “authorize the import of select oil field, equipment, parts, and services.”
• New reporting released January 8, 2026 from Reuters (available here) also states that Vitol was reportedly granted a “preliminary special license” to market the import and export of oil from Venezuela for 18 months, and that Vitol would seek to finalize the license and terms under which in can operate in Venezuela in the coming days. Separate reporting from Reuters (available here) indicates that Vitol and Trafigura are reportedly in talks with the Trump administration about the marketing and sale of Venezuelan oil and may be joining a meeting that includes US oil majors with the White House on Friday.

Venezuelan Sanctions Basics and OFAC Licensing

The above reporting highlights the potential for a broader opening of the Venezuelan market to oil cargoes and transactions operating under license from OFAC.  However, broader US sanctions policy towards Venezuela remains unchanged – which means that any persons subject to US jurisdiction would need to apply for and obtain specific authorization in order to proceed with any transactions or dealings that would otherwise be prohibited under US law.

Existing Venezuelan Sanctions

 Under existing Venezuelan sanctions, for example, Petróleos de Venezuela, S.A. (PdVSA) has been designated for blocking sanctions for “operating in the oil sector of the Venezuelan economy” since January 28, 2019, based on Executive Order 13850 (blocking persons operating in the oil sector of the Venezuelan economy) and 13884 (blocking property of the Government of Venezuela).  There have also been aggressive restrictions to prohibit the Venezuelan government’s issuance of digital currency, coins or tokens; prohibitions on the purchase of Venezuelan debt (with certain exceptions for specific bonds trading in the secondary market under general licenses issued by OFAC), and sectoral sanctions on the gold sector and on the state-owned gold company, Minerven. Although for a short while, licenses were issued to begin to ease sanctions in 2023 and 2024, these were not renewed after the Maduro government failed to follow through on its commitments to hold free and fair elections and the Trump administration returned to a policy of maximum pressure, including designating Venezuela-linked criminal groups as terrorist organizations subject to sanctions and military action.  Most recently, the US has aggressively continued to impose sanctions on PdVSA-linked officials, associates and vessels in several actions taken within the last month, on December 11, December 19, and December 31.  Under blocking sanctions, OFAC generally prohibits transactions by U.S. persons within (or transiting) the Untied States that involve any property or interests in property of any blocked persons.  That would include providing or receiving insurance coverage from U.S.-linked persons or facilitating or participating in U.S. dollar transactions that transit the U.S. financial system, unless covered by a license by OFAC.

An Opening in U.S. Licensing Policy?

 The government’s statements this week reflect an opening in U.S. licensing policy for transactions in line with U.S. foreign policy and national security interests. The process for issuing a specific license – i.e., a document issued by OFAC to a particular person or entity, authorizing a particular transaction in response to a written license application – permits OFAC to carve out and authorize transactions, ensuring that those transactions that are consistent with U.S. policy are permitted.  See, e.g., Testimony of R. Richard Newcomb Before the House Financial Services Subcommittee on Oversight and Investigations (June 16, 2004) (“OFAC’s licensing authority serves to “fine tune” or carve out exceptions to the broad prohibitions imposed under sanctions programs, ensuring that those transactions consistent with U.S. policy are permitted, either by general or specific license.”) (available at https://home.treasury.gov/news/press-releases/js1729). 

Persons that may seek to engage in business dealings in Venezuela should analyze whether they are subject to OFAC’s jurisdiction or whether their activities may “cause” a third party to engage in a prohibited transaction or dealing for which a license may be necessary.  In addition, due to the rapid changes underway on the ground in Venezuela and the fluid geopolitical situation (including an ongoing military blockade of sanctioned oil tankers coming into or out of the country), engagement with the U.S government is recommended to ensure that transactions are in line with U.S. policy and fully take into account all security risks.

If you have any questions regarding the foregoing, please contact your primary attorney or a member of the Economic Sanctions and Cross-Border Regulatory Practice at Seward & Kissel LLP.