The US Treasury Department allows some Venezuelan transactions until November 15 – OPIS

The US Treasury Department is giving companies still doing business in Venezuela more time to wrap up their operations.

The department issued a new permit on Friday that gives the companies until November 15 to carry out transactions “necessary for the limited maintenance of essential activities in Venezuela or for the cessation of activities.”

The license applies to Halliburton, Schlumberger Ltd., Baker Hughes Holdings and Weatherford International and their subsidiaries.

The authorization authorizes activities necessary to ensure the safety of personnel or the integrity of operations and assets in Venezuela. It also allows participation in shareholder and board of directors meetings, payment of some third-party invoices, payment of local taxes and purchase of utilities in Venezuela, and the payment of employees and contractors.

It also bans work on new oil wells or facilities in Venezuela, with most activities involving the production, purchase or export of petroleum products and payments to state oil company PDVSA or its subsidiaries.

The license extension comes as the Biden administration tries to walk a fine line between punishing Venezuelan President Nicolas Maduro for failing to deliver on promises to hold free and fair elections later this year while protecting U.S. companies that are still doing business in the country.

On April 17, the US reimposed sanctions on Venezuelan oil and gas exports, while allowing a 45-day period before the sanctions took full effect. The Biden administration also said it would consider on a case-by-case basis requests for specific permits to continue doing business with Venezuela at the end of the 45-day period.

Chevron, recognized as the largest contributor to the recent short-term growth in Venezuelan oil production, will be allowed to continue operating in the country under a separate permit it received in November 2022.

Analysts have said a ban on Venezuelan oil exports could limit the supply of heavy sour crude for U.S. refineries, at a time when Mexico is restricting exports of its own crude and the start of operations on the Canadian Trans Mountain Pipeline Expansion Increases Global Competition for Canadian Heavy Crude Oil .

This content was created by Oil Price Information Service, operated by Dow Jones & Co. OPIS is operated independently of Dow Jones Newswires and The Wall Street Journal.

–Reporting by Steve Cronin, [email protected]; Editing by Michael Kelly, [email protected]

(END) Dow Jones Newswires

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