The U.S. on May 23 renewed for six months a license authorizing a group of U.S. oil service companies to preserve assets in Venezuela, keeping long-standing restrictions that prevent them from drilling, processing or handling any Venezuela-origin barrel of oil.
The license, issued by the U.S. Treasury Department, was first granted in 2019 to Halliburton Co., Schlumberger NV, Baker Hughes Co. and Weatherford International LLC, along with U.S. producer Chevron Corp, by former U.S. President Donald Trump's administration.
In November, the Treasury gave Chevron a separate license to expand operations in Venezuela and export crude to the U.S., but kept restrictions for the oil service companies.
The license this time extended the authorization to the service firms for preserving their assets in Venezuela through Nov. 19, the document published by the Treasury said.
Some of the four U.S. service companies have rigs and other specialized equipment stored in Venezuela. The license allows them to maintain those assets, offices and staff in the country, but does not authorize any core activity with state company PDVSA or its joint ventures, such as drilling or well maintenance.
Recommended Reading
Midyear Outlook: Will Crude and Gas Prices Rebound This Year?
2023-05-26 - Volatility exists in every corner of the market, but demand is the real wild card.
Chart Talk: Mexico and Argentina’s Big Bet on LNG Exports
2023-05-26 - Staked by the Permian and the Vaca Muerta, Mexico and Argentina have the potential to bring to market 32.6 mtpa and 25 mtpa respectively over the near-to-mid-term, according to data from Rystad Energy and Argentina’s YPF SA.
Oil Prices Up Amid OPEC+ Supply Cut Uncertainty
2023-05-26 - Brent crude increased to $77.03 a barrel, while West Texas Intermediate rose to $72.79 a barrel.
LatAm LNG Imports Expected to Rise Through 2030
2023-05-25 - LNG imports across the Latin America and Caribbean region will remain strong through 2030, according to Poten & Partners.
Oil Down Nearly 3% as Russia Downplays Additional OPEC+ Cuts
2023-05-25 - Brent crude futures decreased to $76.33 per barrel, while West Texas Intermediate crude dropped to $72.24.