Featured image: The symbol of the US Department of the Treasury on its headquarters. File photo.
The US Treasury Department has renewed licenses 80 and 5Q for 6 months, authorizing four US-based oil corporations to continue operating their joint ventures with Petróleos de Venezuela (PDVSA) during the stipulated time.
In a three-page document, the Office of Foreign Assets Control (OFAC) of the US Treasury extended the licenses until May 9, 2025. Both licenses are related to transactions, contracts, and agreements between PDVSA and US oil corporations.
The companies benefiting from this license extension are Halliburton, Schlumberger Limited, Baker Hughes Holdings, and Weatherford International.
These companies perform maintenance of wells, provide drilling rigs, rent equipment, and provide other services related to oil exploration and production.
According to OFAC, license 80 will be valid until May 9, 2025, and 5Q will come into effect from March 7, 2025.
With this extension, the US Treasury allows the companies to carry out the necessary transactions related to their operations in Venezuela and to fulfill the contracts and agreements that ensure the safety and preservation of the personnel and assets of these companies.
The document clarified that the license extension does not allow these companies to conduct drilling, production, processing, purchase, transportation, or delivery of oil or petroleum products of Venezuelan origin.
The extended general license 80 replaces the license 8N that allowed limited operations until November 16, 2024.
What do the licenses establish?
License 80 allows limited transactions and activities necessary for the safety or the preservation of assets in Venezuela. Meanwhile, License 5Q authorizes certain transactions related to the Petróleos de Venezuela, SA 2020 8.5 Percent Bond on or after March 7, 2025.
License 80 authorizes the executives of the aforementioned companies to participate in shareholder and board of directors meetings, make payments on third-party invoices for transactions and activities authorized by the license, or those “incurred prior to April 21, 2020, provided such activity was authorized at the time it occurred.”
Additionally, it allows the payment of local taxes in Venezuela and the disbursement of salaries for employees and contractors in the country. Nevertheless, it does not authorize contracting “additional personnel or services, except as required for safety.”
(RedRadioVE) by Ana Perdigón
Translation: Orinoco Tribune
OT/SC/SA
