What You Need To Know

• The U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued six new general licenses, and updated a seventh that allow for many activities related to: the export of Venezuelan oil and petrochemical products from Venezuela; the exploration, development, and production of oil, gas, and petrochemical products in Venezuela; the generation, transmission, storage, or distribution of electricity in Venezuela; the export to Venezuela of U.S.-origin diluents; negotiating for investment in the oil, gas, petrochemical, and electricity sectors in Venezuela; and the export of Venezuelan gold.
• The new general licenses contain a number of significant conditions, including in GLs 46B and 51, a limitation to the activities of “established U.S. entities,” and in GLs 46B, 47, 48A, 50A, and 51, limits on counterparties and operators, a prohibition on the involvement of entities with specific relationships to China, Cuba, Iran, North Korea, and Russia, or of sanctioned vessels, and contractual requirements to use U.S. law and U.S. dispute resolution mechanisms.
• This regulatory space is fast moving, with multiple changes occurring over a short time period, and any plan to rely on these general licenses and authorizations should include transaction-by-transaction assessment, along with monitoring by compliance and legal functions.

Introduction

Over the last two months, OFAC has issued and updated a series of general licenses and Frequently Asked Questions (FAQs) that allow for a variety of activities in the Venezuela oil, gas, petrochemical products, electricity, and gold sectors when they involve persons sanctioned pursuant to the Venezuela sanctions regulations, including the Government of Venezuela (GOV) and its state-owned oil company PdVSA.  The specific general licenses are as follows:

• General License 46 (GL 46): Issued January 29, 2026, updated on February 10, 2026 (GL 46A), and further updated on March 13, 2026 (GL 46B), this license authorizes a broad set of activities related to the export of Venezuelan-origin oil, and the import of petrochemical products into the United States, in each instance as conducted by “established U.S. entities.”
• General License 47 (GL 47): Issued February 3, 2026, GL 47 authorizes activities related to the sale of U.S.-origin diluents to Venezuela.
• General License 48 (GL 48): Issued February 10, 2026, and updated on March 13, 2026 (GL 48A), GL 48A authorizes transactions related to the provision — from the United States or by a U.S. person — of goods, technology, software, or services for the exploration, development, or production of oil, gas, or petrochemical products in Venezuela, or for the generation, transmission, storage, or distribution of electricity in Venezuela.  GL 48A also expressly prohibits the formation of new joint ventures or other entities in Venezuela and transactions related to the exportation or reexportation of diluents to Venezuela.
• General License 30B (GL 30B): Originally issued in 2019, and updated on February 10, 2026, GL 30B authorizes U.S. person transactions with the GOV and another specifically identified sanctioned entity if ordinarily incident and necessary to operations or use of ports and airports in Venezuela. The recent change removed a prior prohibition on transactions involving diluents, likely to avoid a conflict with GL 47.
• General License 49 (GL 49): Issued February 13, 2026, and updated on March 13, 2026 (GL 49A), GL 49A authorizes U.S. person negotiations of and entry into contingent contracts for new investment in oil, gas, petrochemical products, or electricity sector operations in Venezuela.
• General License 50 (GL 50): Issued February 13, 2026, GL 50 authorizes transactions related to oil and gas sector operations in Venezuela by five major energy companies and their subsidiaries. On February 18, OFAC added a sixth, reissuing General License 50A (GL 50A).
• General License 51 (GL 51): Issued March 6, 2026, GL 51 authorizes a broad set of activities related to the export of Venezuelan-origin gold to the United States including for refinement or resale by “established U.S. entities.”

In each general license, OFAC set out significant and detailed conditions that must be observed when relying on these general licenses.  

Key Takeaway #1: GLs 46A-51 are Expansive in the Activities Permitted, But Contain Many Restrictions on How These Activities May Be Performed and by Whom

Although these licenses address a broad range of activities related to the Venezuelan oil trade, their conditions ensure that this will be only a partial re-opening.  These include:

• a prohibition on the involvement of (i) Iranian, North Korean, or Cuban entities or entities owned or controlled by them (GLs 46B-51), (ii) Russian entities or entities owned or controlled by them (GLs 46B, 48A-51), (iii) Chinese entities or entities owned or controlled by them (GLs 48A-50A) or Venezuelan or U.S. entities owned or controlled by Chinese entities (GLs 46B, 51), and (iv) sanctioned vessels;
• a requirement for specific contract terms requiring U.S. law, commercially reasonable terms, and dispute processes (GLs 46B, 47, 48A, 50A, 51);
• mandatory payment mechanics to ensure U.S. government control (GLs 46B, 48A, 50A, 51);
• reporting standards that must be met (GLs 46B, 47, 48A, 50A, 51); and
• a requirement to obtain a further OFAC license for the performance of contingent contracts for new investment in oil, gas, petrochemical products, or electricity sector operations in Venezuela (GL 49A).

Businesses that decide to rely on these general licenses will need to take steps to comply with the corresponding conditions.

Key Takeaway #2: Not All Persons Subject to U.S. Sanctions Jurisdiction Can Rely on GLs 46B or 51

GLs 46B and 51 only authorize transactions that are ordinarily incident and necessary to certain specified activities by “an established U.S. entity,” defined as an entity organized under U.S. law on or before January 29, 2025.  This formulation is narrower than the more familiar “U.S. person” standard, and prevents activities by newly formed U.S. entities, and may be intended to prevent non-U.S. companies from using the license by forming such entities.  In FAQs, OFAC clarifies that entities that are not “established U.S. entities” may engage in transactions that are “ordinarily incident and necessary” to an established U.S. entity’s activities that are authorized under GL 46B (OFAC FAQ 1230), and that financial institutions may rely on statements from customers that a transaction is within the bounds of GL 46B, unless a financial institution has reason to know otherwise (OFAC FAQ 1234).

GL 47 is not restricted to “established U.S. entities.”  However, because the focus of GL 47 is on the provision of U.S.-origin diluents to Venezuela, it already, functionally, necessitates U.S. entity involvement.  

GLs 30B and 48A-50A do not contain these limitations and apply broadly to all U.S. persons, including individuals and entities organized under U.S. law regardless of formation date.

Key Takeaway #3: U.S. Law Rules. 

Persons can only rely on GLs 46B-48A, 50A, and 51 if the contracts governing the authorized activity are (i) governed by U.S. law; and (ii) note that any dispute resolution must occur in the United States.

This requirement is likely meant to provide protection to U.S. entities looking to reenter Venezuela by requiring that any disputes and questions of interpretation rely upon U.S., not Venezuelan, law.  It also limits the possibility that a contract could later become subject to a conflict-of-laws issue, whether due to a sanctions blocking statute imposed by a foreign government or regulatory changes from the Venezuelan government.  OFAC confirmed in its FAQs for GL 46B that the dispute resolution requirement is only for agreements between established U.S. entities and sanctioned Venezuelan entities; agreements between established U.S. entities and third parties do not require U.S. dispute resolution mechanisms (OFAC FAQ 1233). We read this FAQ to apply to GL 46B and the other general licenses with these requirements.

Key Takeaway #4: Check For Applicability of Oil, Gas, Petrochemical Products, Electricity, or a Combination

The general licenses are very specific about which products are covered.  The general authorization to export from Venezuela (GL 46B) is explicitly limited to Venezuelan-origin oil (where OFAC FAQ 1226 defines oil as including both crude oil and its blends, as well as petroleum products) and petrochemical products (defined in GL46B itself) and does not extend to gas or broader energy activity.

In comparison, GL 48A authorizes activities related to exploration, development, or production of oil, gas, or petrochemical products, as well as the generation, transmission, storage, or distribution of electricity in Venezuela.  Authorized services include: (i) processing payments; (ii) arranging shipping and logistics, including chartering vessels; (iii) obtaining marine insurance and P&I coverage; (iv) arranging port and terminal services; and (v) maintenance of oil, gas, petrochemical products, or electricity operations, including refurbishment or repair of items used for exploration, development, or production, or for electricity generation, transmission, storage, or distribution.  The same OFAC FAQ 1226 definition (crude oil and petroleum products) would likely apply to GL 48A, expanding this authorization to apply to crude oil and its blends, as well as petroleum products.  Other OFAC FAQs lay out the types of items and services authorized under GL 48A.  Notably, GL 48A expressly prohibits the formation of new joint ventures or other entities in Venezuela and transactions related to the exportation or reexportation of diluents to Venezuela.

The authorization to negotiate investment in Venezuela (GL 49A) applies to oil, gas, petrochemical products, and electricity sector investment, as does the authorization for oil and gas activities involving the six identified entities in GL 50A.

Key Takeaway #5: Foreign Adversaries Keep Out

GL 46B and GLs 48A-51 expressly exclude transactions involving (i) blocked (sanctioned) vessels; (ii) persons located in, or organized under the laws of, Russia, Iran, North Korea, or Cuba, and for GLs 48A-50A, China, as well as entities owned or controlled by such persons; and (iii) entities located in, or organized under the laws of, the U.S. or Venezuela that are owned or controlled by, or in a joint venture with, Chinese (PRC) persons (GLs 46B, 51).

GL 47 contains exclusions over transactions involving persons located in or organized under the laws of Iran, North Korea, or Cuba (and entities owned or controlled by them), and blocked vessels, but does not include the Russia or China exclusions found in the other general licenses.  Parties planning to rely on these general licenses must continue to screen and review ownership of all counterparties, with particular attention to which specific license they are relying upon, because of the exclusions.

Key Takeaway #6: Sustained Oversight and Strict Payment Restrictions by the U.S. Government 

GLs 46B-48A, 50A, and 51 require reports to OFAC noting the parties involved, the quantities and values, the dates of the transaction, and in the case of GLs 46B and 51, the taxes/fees paid to the Government of Venezuela. GL 46B also requires identification of the ultimate countries of destination, while GL 51 requires the documentation demonstrating supply chain due diligence plans.

GL 46B requires reporting to OFAC only when Venezuelan-origin oil is sold to countries other than the United States.  The reports must be submitted within 10 days after the first transaction and each 90 days thereafter.

Significantly, GLs 46B, 48A, 50A, and 51 require that any payments to blocked persons, other than local taxes, permits, or fees, be made to designated Foreign Government Deposit Funds or other OFAC-identified accounts.  These funds will remain under the control of the U.S. government on behalf of the Government of Venezuela.  To obtain payment information for payments to these accounts, the payer should contact the U.S. Department of State (there is a specific email provided) and provide (a) the names and addresses of all relevant parties, (b) a description of the contract or obligation, (c) the date of sale and copies of corresponding invoices/contracts, (d) the amounts, currencies, and dates, (e) the specific license that you are relying upon, (f) copies of transaction records, and (g) a point of contact.

These provisions underscore that GLs 46B-48A, 50A, and 51 create substantial U.S. government visibility into commercial flows, counterparties, and revenue streams tied to Venezuelan oil, gold, petrochemical products, electricity, and gas as well as control over how the Government of Venezuela may use the proceeds of oil, gas, petrochemical products, electricity, and gold sales.  We expect that OFAC will be similarly focused on such control and visibility with respect to any future general licenses, specific licenses, or enforcement of sanctions relating to Venezuela.

Key Takeaway #7: Specific Licenses Still Reign Supreme

If a general license does not appear to authorize any proposed activity, OFAC still offers the possibility of obtaining a specific license.

In one instance (GL 49A), the activity (e.g., negotiating for investment in the oil, gas, petrochemical products, or electricity sector in Venezuela) is only authorized if the final contract includes an express commitment to obtain an OFAC license to perform the agreement. When ready to apply for the contractually required licenses, parties should be aware that OFAC has explained that it will consider authorizing these licenses on a case-by-case basis. OFAC also indicated that the limitations included in the general licenses (e.g., restrictions on dealings with foreign adversaries and sanctioned vessels, requirement to use commercially reasonable terms, U.S. jurisdiction for dispute resolution, and payment into a USG controlled account) can be informative for the likelihood a license may be granted.

Other specific licenses, if approved by OFAC, may be subject to similar restrictions.

Key Takeaway #8: More to Come?  

All of these general licenses are likely to generate increased activity involving U.S.-organized oil traders, shipping companies, logistics providers, and insurers, particularly where Venezuelan oil is destined for the United States.  Since OFAC started issuing these general licenses in early February, it has regularly issued FAQs explaining nuances and answering industry-wide questions. We expect this process to continue as more questions emerge.

Moreover, requirements under other federal authorities, including the Export Administration Regulations (EAR) remain in effect.  Companies should therefore continue to assess whether equipment, technology, or services associated with oil activity implicate export licensing, end-use, or end-user restrictions, particularly where transactions involve sensitive jurisdictions or intermediaries.