Economy News

United States Extends Authorization for Transactions with PDVSA—Made in USA Only

June 1, 2021 Daniela Jimenez 8H General License, Baker Hughes, Halliburton, made in the USA only, OFAC, Oil, PDVSA, Schlumberger, US and European sanctions, US Sanctions, Venezuela, Weatherford

Washington extended the “licenses” of US companies Chevron Corp, Halliburton, Schlumberger Limited, Baker Hughes and Weatherford International to make transactions with Venezuela’s state-owned oil company Petróleos de Venezuela (PDVSA). The licenses were extended until the end of the year, confirmed the United States Department of the Treasury, within the framework of illegal US sanctions.

In the midst of unilateral “sanctions” and an economic blockade against Venezuela, the “8H General License” extends until December 1, 2021 the deadline for some companies to reduce their activities with the state-owned Petróleos de Venezuela SA (PDVSA), as the prior license authorized these transactions until June 3, 2021.

Remarkably, all other international corporations working in Venezuela in the oil sector, whether from India, Italy, Spain, China, Russia, or many other countries, did not receive this preferential treatment that seems to benefit the operations of US corporations to the detriment of their competitors in the rest of the world.

This represents the seventh extension of authorizations for these oil companies to operate in Venezuela, within the framework of coercive measures and US threats towards companies that have commercial relations with PDVSA. This license only allows the listed companies to conduct transactions “necessary for the limited maintenance of essential operations in Venezuela or the wind down of operations” while oil extraction, exploration, and commercialization remains forbidden except in certain very limited circumstances.

#URGENTE | EEUU autoriza las transacciones con PDVSA hasta el 1 de diciembre pic.twitter.com/zDzpYiJPJo

— REDRADIOVE (@RedRadioVe) June 1, 2021

Criminal sanctions
The devastating attack on Venezuela’s oil industry, its finances and the country’s economy, through the illegal “sanctions” applied by Washington, have caused a reduction of 99% of the national income in foreign currency and has had a corresponding impact on wages, particularly those in the public sector.

The current Minister of Petroleum, Tareck El Aissami, has asserted that unilateral coercive measures have prevented companies and strategic partners from carrying out activities associated with the energy domain. Any companies who consider interactions with the state industry receives threats of “sanctions.” This has led to a reduction in the number of drills, the cancellation of new wells, and the inability to maintain inactive wells.

It should be noted that in January 2019, after recognizing deputy Juan Guidó as the “president in charge” of Venezuela, the US issued several “sanctions” against PDVSA, with the explicit objective of “exerting pressure” against the government of President Nicolás Maduro.

The so-called sanctions affected oil service companies, to which the US gave a period of six months to terminate operations with the Venezuelan state. This decision was appealed by the companies. As a result the term has been continually extended and the aforementioned licenses issued, but only for US companies.

Featured image: PDVSA oil field in Venezuela. File photo.

(RedRadioVE) by Daniela Jimenez with Orinoco Tribune content

Translation: Orinoco Tribune

OT/JRE/SL