Issuance of Venezuela-related General Licenses and Associated Frequently Asked Questions

The Office of Foreign Assets Control (OFAC) has published a new press release to inform about new sanction-related measures. Specifically, the Office issued two new General Licenses (GLs) and a new frequently asked question (FAQ) all relating to sanction measures in connection with Venezuela. Each measure is briefly described below:
(1) OFAC has issued a new General License 8M to permit (financial) „transactions involving Petróleos de Venezuela, S.A. (PdVSA)“ or any of the entities owned or controlled by such (50% ownership interest) „necessary for the limited maintenance of essential operations in Venezuela or the wind down of operations in Venezuela for certain entities“ that would otherwise be prohibited by Executive Order (E.O.) 13850 and E.O. 13884. The affected entities are:
– Halliburton
– Schlumberger Limited
– Baker Hughes Holdings LLC
– Weatherford International, Public Limited Company
The new General License replaces General License 8L, dated May 23, 2023, in its entirety and is valid through May 16, 2024, 12:01 a.m. Eastern Standard Time.
(2) OFAC has issued new General License 45A to permit (financial) transactions for the purpose of the repatriation of Venezuela nationals to Venezuela from the „Western Hemisphere“ as they relate to Consorcio Venezolano de Industrias Aeronauticas y Servicios Aereos, S.A. or any entity owned or controlled by such (50% or more ownership interest). The new General License replaces General License 45, dated October 18, 2023, in its entirety and specifically authorizes payments for non-commercial flights and the maintenance of specified blocked aircrafts (please see the Annex to the license).
(3) OFAC has updated its FAQ document dealing with the previously concluded agreement between the U.S. and Venezuela on the relaxation of sanction measures to include new FAQ 6 which reads as follows – as quoted:
FAQ 6: Can U.S. persons continue to rely on existing general licenses to engage in transactions related to oil or gas sectors operations in Venezuela despite the more expansive authorizations provided in Venezuela General License (GL) 44?
A: Yes. U.S. persons may continue to rely on other authorizations related to Venezuela’s oil or gas sector operations in Venezuela, including GL 8M, “Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Wind Down of Operations in Venezuela for Certain Entities” and GL 41, “Authorizing Certain Transactions Related to Chevron Corporation’s Joint Ventures in Venezuela,” and are not obligated to operate under the more expansive authorizations provided in GL 44.
Renewal of GL 44 is subject to the representatives of Maduro following through with their commitments and taking concrete steps toward a democratic election by the end of 2024 as outlined in the Secretary of State’s statement from October 18, 2023.