Venezuela Oil Industry Sanctions Update: Analyzing OFAC General Licenses and New FAQs

In February 2026, the US government issued additional authorizations and clarifying guidance related to previously prohibited transactions in Venezuela. This follows an earlier authorization in January 2026 which licensed the sale and transport of Venezuelan oil.

Since the United States authorized “established US entities” to lift, explore, reexport, sell, resell, supply, store, market, purchase, deliver, and transport Venezuelan oil on January 29, 2026, the government has articulated a broader strategy to implement its goals aimed at increasing US engagement in the Venezuelan oil sector while maintaining the underlying sanctions authorities targeting the government of Venezuela (GoV).

Since the Office of Foreign Assets Control (OFAC) issued General License (GL) 46 (updated to GL 46A) last month (see our previous LawFlash on GL 46), it has continued to expand the list of authorized activities, including the following:

• Permitting established US entities to engage in transactions relating to Venezuelan-origin oil
• Authorizing exports of US-origin diluents to Venezuela
• Authorizing transactions and activities necessary to port and airport operations
• Authorizing the supply of certain goods and services to Venezuela
• Authorizing entry into contingent contracts for certain investments
• Authorizing transactions related to oil and gas sectors of certain entities

GENERAL LICENSE 47

On February 3, 2026, OFAC issued General License No. 47 (GL 47), Authorizing the Sale of US-Origin Diluents to Venezuela, which authorizes transactions “that are ordinarily incident and necessary to the exportation, reexportation, sale, resale, supply storage, marketing, delivery, or transportation of U.S.-origin diluents to Venezuela” including transactions involving Petróleos de Venezuela, S.A. (PdVSA) and its subsidiaries (collectively PdVSA Entities).

As with GL 46A, OFAC included examples of transactions authorized by GL 47, including processing of payments; arranging shipping and logistics services, including chartering vessels; obtaining marine insurance and protection and indemnity coverage; and arranging port and terminal services, including with port authorities or terminal operators that are part of the GoV.

Similarly, GL 47, like GL 46A, expressly does not authorize certain activities, such as those involving commercially unreasonable terms; denominations in digital currency; persons and companies in Iran, North Korea, or Cuba; or blocked vessels or unblocking of property.

To effectuate this authorization, OFAC also issued General License No. 30B (GL 30B) on February 10, 2026, replacing and superseding General License 30A (authorizing certain transactions necessary to port and airport operation), removing the prohibition on the exportation or reexportation of diluents to Venezuela.

GENERAL LICENSE 48

On February 10, 2026, OFAC issued General License No. 48 (GL 48), Authorizing the Supply of Certain Items and Services to Venezuela, which authorizes transactions that are “ordinarily incident and necessary to the provision from the United States or by a U.S. person of goods, technology, software, or services for the exploration, development, or production of oil or gas in Venezuela,” including transactions involving PdVSA Entities or the GoV.

Like with GL 46A, the following criteria must be met:

• Any contract for such transactions with the GoV or PdVSA Entities must specify that the laws of the United States or any jurisdiction within the United States govern the contract, and that any dispute resolution under the contract must occur within the United States; and
• Any payment to a blocked person, not including local taxes, permits, or fees, must be made into the Foreign Government Deposit Funds, as specified in EO 14373 of January 9, 2026, or any other account as instructed by the US Department of the Treasury.

OFAC included examples of transactions authorized by GL 48, including processing of payments; arranging shipping and logistics services, including chartering vessels; obtaining marine insurance and protection and indemnity coverage; and arranging port and terminal services, including with port authorities or terminal operators that are part of the GoV. Transactions related to the maintenance of oil or gas operations in Venezuela, including the refurbishment or repair of items used for oil or gas exploration, development, or production services are also authorized under GL 48.

As with GL 47, GL 48 does not authorize certain activities, such as those involving commercially unreasonable terms; debt swaps or payments in gold; denominations in digital currency; persons and companies in Iran, North Korea, or Cuba; or involving blocked vessels or unblocking of property.  GL 48 also does not authorize the formation of new joint ventures or other entities in Venezuela to explore or produce oil or gas; and any transactions or dealing related to the exportation or reexportation of diluents, directly or indirectly, to Venezuela.

OVERVIEW OF GENERAL LICENSE 49

On February 13, 2026, OFAC issued General License No. 49 (GL 49), Authorizing Negotiations of and Entry Into Contingent Contracts for Certain Investment in Venezuela, which authorizes transactions related to the negotiation of and entry into contingent contracts for new investment in oil or gas sector operations in Venezuela. Such contracts must be expressly contingent upon separate authorization from OFAC (contingent contracts). These include contracts to engage in new oil or gas exploration, development, or production activities in Venezuela, expand existing operations in Venezuela, and to form new joint ventures or other entities in Venezuela related to the foregoing activities.

OVERVIEW OF GENERAL LICENSE 50A

Lastly, OFAC issued General License No. 50 (GL 50) on February 13, 2026, Authorizing Transactions Related to Oil or Gas Sector Operations in Venezuela of Certain Entities. (This license was subsequently updated to add another entity and retitled GL 50A on February 18, 2026). GL 50A more broadly authorizes transactions that would otherwise be prohibited under the Venezuela Sanctions Regulations (VSR), including those involving the GoV, PdVSA, and PdVSA Entities, so long as they relate to oil or gas sector operation in Venezuela by specified energy companies (BP, Chevron, Eni, Repsol, Shell, and as of February 18, 2026, Maurel & Prom) and their subsidiaries.

GL 50A authorizes such transactions only if all of the following criteria are met: (1) any contract for the authorized transactions with the GoV, PdVSA, or PdVSA Entity must specify that US law governs the contract and that any dispute resolution under the contract occurs in the United States; and (2) any payment to a blocked person (excluding local taxes, permits, or fees) must be made to the Treasury’s Foreign Government Deposit Funds as established under EO 14373 of January 9, 2026, or another account as instructed by the US Department of Treasury.

REPORTING REQUIREMENTS

Like GL 46A, GL 47, GL 48, and GL 50A contain a requirement to provide certain information to the US Department of State and the US Department of Energy. The information is due within days of the first transaction and includes, among other things, the parties involved and the quantities and values.

NEWLY ISSUED FAQS

On February 6, 2026, OFAC issued new Frequently Asked Questions (FAQs) providing guidance related to activities authorized by GL 46A.   

FAQ 1226

FAQ 1226 defines “Venezuelan-origin oil” as referenced in GL 46A to include petroleum products, petroleum byproducts, and crude oil blends. The FAQ clarifies that consistent with the definition of “Venezuelan oil” in Section 5(a) of Executive Order 14245, Imposing Tariffs on Countries Importing Venezuelan Oil, the term includes crude oil or petroleum products extracted, refined, or exported from Venezuela, regardless of the nationality of the entity involved in the production or sale of such crude oil or petroleum products.

FAQ 1226 also lists specific examples of petroleum products, as defined by the US Energy Information Administration (EIA), including “unfinished oils, liquefied petroleum gases, pentanes plus, aviation gasoline, motor gasoline, naphtha-type jet fuel, kerosene, distillate fuel oil, residual fuel oil, petrochemical feedstocks, special naphthas, lubricants, waxes, petroleum coke, asphalt, road oil, still gas, and miscellaneous products obtained from the processing of crude oil (including lease condensate), natural gas, and other hydrocarbon compounds. In keeping with the EIA's standard definition, petroleum products do not include natural gas, liquefied natural gas, biofuels, methanol, and other non-petroleum fuels.”

FAQ 1227 and FAQ 1228

FAQ 1227 lists, in greater detail, activities that are authorized by GL 46A. Authorized activities covered by the FAQ that are not explicitly identified in GL 46A, include the below:

• Engaging in commercial, legal, and technical discussions necessary to scope purchases of Venezuelan-origin oil, including with third-party legal, commercial, or due diligence consultants
• Conducting safety, environmental, and other relevant inspections, including site surveys
• Arranging security services, delivery points, and shipping preparation
• Making required repairs and maintenance to pipeline, storage, or port infrastructure necessary to effectuate the loading of vessels
• The financing of related cargos or receivables

FAQ 1228 clarifies that GL 46A only authorizes the purchase, exportation, and sale of Venezuelan-origin oil that has already been extracted, including the refining of such oil. Exploration and production activities involving Venezuelan-origin oil are not authorized under GL 46A. Further, GL 46A does not authorize activities related to new investments in the Venezuelan oil sector, “such as negotiations with Petróleos de Venezuela, S.A. (PdVSA) to enter into a contract to develop or operate oil fields, blocks, or other concessions.”

FAQ 1230

FAQ 1230 confirms that non-US persons may engage in transactions or provide services that are ordinarily incident and necessary to the established US entity’s transactions authorized under GL 46A.

FAQ 1232

FAQ 1232 defines “commercially reasonable terms” as terms consistent with prevailing market and industry standards for comparable products or services, negotiated at arm’s length. This includes consideration of factors such as pricing, quality, quantity, performance, safety, and applicable governance, operational, and legal or compliance requirements.

FAQ 1233

FAQ 1233 explains that the dispute-resolution requirement in paragraph (a)(1) of GL 46A applies only to contracts between an established US entity and the GoV, PdVSA, or PdVSA Entities. The requirement does not apply to indirect parties or counterparties, such as shipping companies or insurance providers, involved in downstream or ancillary transactions related to activity authorized by GL 46A.

TAKEAWAYS

Established US entities relying on the recent Venezuela general licenses should be mindful of several things in pursuing transactions within the scope of the general licenses’ authorizations.

First, as noted above, GLs 46A, 47, 48, 49, and 50A expressly do not authorize transactions involving entities in Venezuela or the United States that are owned or controlled by or in a joint venture with a person in or organized under certain specified countries of concern. Because of this prohibition, people relying on these general licenses must conduct enhanced risk-based diligence to verify ownership and control of entities involved.

In scoping and performing such due diligence, companies should keep in mind that while US economic sanctions are a strict liability regime, “knowledge”—including whether a violator had only “reason to know” of a violation—is nonetheless relevant to OFAC’s determination of any penalty for violations. Due diligence should accordingly evaluate whether there are “red flags” that any of the various GL conditions mentioned above are violated—for example, suggestions that persons or companies from Iran, North Korea, or Cuba are involved—or that other potentially applicable sanctions programs (e.g., as to Russia and Belarus) might be implicated.

GLs 46A, 47, 48, 30B, 49, and 50A also do not currently have an expiration date. However, as with all general licenses, OFAC reserves the right to revoke or amend them at any time. To that end, the longevity of these general licenses depends on the actions of the GoV.

Given the velocity of change in US-Venezuela relations, corporations considering entering the Venezuelan market must be mindful of ongoing developments in Venezuela, particularly with regards to the GoV, as those decisions will have real impacts on existing and future authorizations.

Finally, the GLs currently only apply to oil and gas industry–related activities. Transactions and activities in other industries of the Venezuelan economy subject to US sanctions remain prohibited unless another general license applies.

STAY INFORMED

Our team continues to closely monitor developments related to Venezuela. Visit our Venezuela Global Capabilities page for an overview of how we advise clients on Venezuela-related legal, regulatory, and risk considerations, and for ongoing updates and related insights.

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Legal practice assistants Charlie Biggs and Victoria Desimoni contributed to this LawFlash.