On February 13, 2026, as part of an ongoing series of sanctions-easing measures following the capture of Venezuelan President Nicolás Maduro in January 2026, the US Department of the Treasury’s Office of Foreign Assets Control (“OFAC”) issued two general licenses authorizing certain activities related to operations in Venezuela’s oil and gas sector. As further detailed below, OFAC General License No. 49 (“GL 49”) authorizes US persons to negotiate and enter into contingent contracts for certain new investments in Venezuela’s oil and gas sector, while General License No. 50 (“GL 50”) separately authorizes certain transactions relating to specific entities’ oil or gas sector operations in Venezuela.
These general licenses do not authorize any transactions involving persons located in Russia, Iran, North Korea, Cuba, China, or any entity owned or controlled by, or in a joint venture with, such persons. Similarly, the general licenses do not authorize the unblocking of any property blocked pursuant to the Venezuela Sanctions Regulations, 31 C.F.R. Part 591 (“VSR”), or any transactions involving blocked vessels.
GL 49
GL 49 authorizes the negotiation and signing of “contingent contracts” for new oil and gas investments in Venezuela, even if those transactions would otherwise be prohibited by the VSR, but does not authorize the performance of such contracts, which must be made expressly contingent on obtaining separate authorization from OFAC.
Notably, this authorization extends to relevant dealings involving the Government of Venezuela (“GoV”), Petróleos de Venezuela, S.A. (“PdVSA”), or any entity in which PdVSA owns, directly or indirectly, a 50 percent or greater interest (collectively, “PdVSA Entities”).
GL 49 defines “contingent contracts” to include executory contracts, executory pro forma invoices, agreements in principle, executory offers capable of acceptance such as bids or proposals in response to public tenders, binding memoranda of understanding, or any other similar agreement performance.
Such contingent contracts may relate to: (i) engagement in new oil or gas exploration, development, or production activities in Venezuela; (ii) the expansion of existing operations in Venezuela; and (iii) the formation of new joint ventures or other entities in Venezuela related to the foregoing activities. GL 49 clarifies that prefatory steps for the negotiation and signing of contingent contracts, such as conducting commercial, legal, technical, safety, and environmental due diligence and assessments, are also authorized.
GL 50
GL 50 authorizes all transactions prohibited by the VSR that are related to the Venezuelan oil or gas sector operations of BP PLC, Chevron Corporation, Eni S.p.A., Repsol S.A., and Shell PLC, or any subsidiaries of the foregoing, subject to certain conditions (described below). Like GL 49, this authorization extends to relevant transactions involving the GoV, PdVSA, or any PdVSA Entities.
To rely on GL 50, contracts related to such transactions with the GoV, PdVSA, or PdVSA Entities must be governed by US law and require dispute resolution in the United States. Further, unless instructed otherwise by the US Department of the Treasury, any monetary payment to a blocked person must be made into the Foreign Government Deposit Funds, pursuant to Executive Order 14373, which we covered in a separate blog post, available here. This requirement does not apply to payments for local Venezuelan taxes, permits, or fees, unless the payment is for oil or gas taxes or royalties payable to the GoV, PdVSA, or any PdVSA Entities.
Any person that engages in transactions pursuant to GL 50 must also provide a detailed report that identifies: (i) the parties involved; (ii) a description of the transactions, including as relevant, the quantities, values, and dates of the transactions; and (iii) any taxes, fees, or other payments provided to the GoV. Such reports must be submitted to Sanctions_inbox@state.gov and VZReporting@doe.gov and are due ten (10) days after the execution of the first of such transactions and every 90 days thereafter while such transactions are ongoing.
GL 50 does not authorize payment terms that: (i) are not commercially reasonable; (ii) involve debt swaps or payments in gold; or (iii) are denominated in digital currency, digital coin, or digital tokens issued by, for, or on behalf of the GoV, including the petro.
If you would like to explore more of our insights and resources for businesses operating in Venezuela, please see The Venezuela Brief. As developments are fast moving, keeping updated on US sanctions and changes in Venezuelan law is more important than ever and our Venezuela team and sanctions team is available to address any questions.
