Venezuela urges foreign oil companies to defy U.S. sanctions

In Venezuela, the Vice President and Oil Minister Delcy Rodríguez recently addressed the termination of oil and gas licenses for foreign companies. This decision followed the Trump administration's revocation of these licenses, which were initially granted during the Biden administration for companies operating within U.S. oil sanctions. The revocation affects numerous international firms, including Repsol, ENI, and Chevron, compelling them to cease operations imminently. During this tumultuous time, Rodríguez assured that Venezuela continues to produce oil at normal levels and that the country is committed to fulfilling its contracts with international firms despite the U.S. restrictions. The context surrounding this situation includes a series of U.S. sanctions imposed on Venezuela’s state-owned oil company PDVSA, which were initiated by Trump in 2019 due to human rights violations by the Maduro regime. With the termination of licenses in the recent environment of escalating tensions, Rodríguez highlighted the importance of maintaining communication with the affected companies. She argued that foreign companies should consider continuing operations in the country without the need for U.S. authorization, as Venezuela does not recognize foreign extraterritorial jurisdictions. This stance reinforces the Maduro regime's call for self-reliance and defiance against foreign pressures. Furthermore, foreign companies are in a challenging position, as those like PDVSA see both domestic production capabilities and international partnerships as essential for economic survival. Rodriguez claimed the nation is focused on a productive independence plan as part of a wider strategy to boost oil production and maintain its refining capabilities. The ongoing sanctions and the U.S. threat of additional tariffs on nations buying Venezuelan oil create further complications, leading to uncertainty over the future of international dealings in the oil sector. The underlying question remains about how foreign oil firms will respond to pressure from the U.S. and if continued dialogue with the Venezuelan government can yield any feasible resolutions. The complex interplay between Venezuelan politics, international relations, and energy production remains a critical factor for stakeholders in the region. As Repsol's CEO stated, keeping open communication with US authorities is central to exploring potential pathways for operation continuity within Venezuela despite the challenging circumstances.