US Licenses Oil Exploration in Venezuela, Boosting Output Hopes

The US Treasury Department has issued a general license allowing the provision of goods and services for oil and gas exploration in Venezuela, a move that could increase output in the country.

This permit comes after Washington relaxed sanctions on Venezuela's energy industry since US forces captured President Nicolas Maduro in early January. The new government of interim President Delcy Rodriguez subsequently agreed to a $2 billion oil supply deal with Washington.

The license requires any contracts signed with the Venezuelan government or state energy company PDVSA to follow US laws, with disputes resolved in the United States. Payments to sanctioned entities must be made into a US-overseen fund.