US allows oil service firms to maintain assets in Venezuela through mid-Nov

The U.S. on Friday extended a license allowing certain transactions with Venezuelan state oil company PDVSA so American energy service companies can maintain assets after Washington last month re-imposed wide sanctions on the OPEC member.

The companies, however, remain prohibited from drilling, lifting, processing, purchasing, transporting or shipping any Venezuela-origin oil.

The license is being extended through Nov. 15 and covers oil services Halliburton HAL.N, Schlumberger SLB.N, Baker Hughes BKR.O, and Weatherford International PLC WFRD.O, a notice on the U.S. Treasury Department’s website showed.

The Biden administration last monthre-imposed sanctions on Venezuela’s oil sector in response to President Nicolas Maduro’s failure to meet his election commitments. The sanctions were first imposed in 2019 during the administration of former President Donald Trump.

Also last month, Treasury had given all companies doing business with Venezuela, including oil purchases, until the end of May to wind down pending transactions.

Venezuela’s oil exportsfell 38% in the month of April after the re-imposition of sanctions approached.
Source: Reuters (Reporting by Katharine Jackson, Timothy Gardner and Ismail Shakil; Editing by Caitlin Webber and Marguerita Choy)