OFAC extends oil service companies’ licenses to operate in Venezuela for six months

The Office of Foreign Assets Control of the United States Department of the Treasury (OFAC) announced on Thursday, November 7, the extension for six months, until May 9, 2025, of the licenses to operate in Venezuela for the oil service companies Halliburton, Schlumberger Limited, Baker Hughes Holdings and Weatherford International.

“Under the terms of the license, these companies may carry out operations necessary to maintain the security or preservation of their assets in Venezuela.”

Companies benefiting from this extension are authorized to establish contracts with companies involving the state oil company PDVSA “or any entity in which PDVSA directly or indirectly owns 50 % or more of the shareholding,” in force before July 26, 2019.

The permits include various well maintenance tasks, as well as the provision of drills and the rental of equipment necessary for crude oil exploration and production activities.

This OFAC extension contemplates certain conditions. According to paragraph (a), these include “transactions and activities necessary to guarantee the security of personnel, or the integrity of operations and assets in Venezuela.”

Furthermore, the directors of the authorized companies may participate in shareholder and board meetings; make “payments of third-party invoices for transactions and activities authorized by paragraph (a) of this general license, or incurred before April 21, 2020, provided that such activity was authorized at the time it occurred.”

OFAC also authorizes companies with an extended license to make payments for “local taxes and the contracting of public services in Venezuela, as well as the cancellation of salaries for employees and contractors in the country.”

M.Pino

Source: bancaynegocios

(Reference image source: Documerica in Unsplash)

Visit our news channel on Google News and follow us to get accurate, interesting information and stay up to date with everything. You can also see our daily content on X/Twitter and Instagram