BP received a permit from the U.S. Treasury’s Office of Foreign Assets Control, enabling it to directly participate in Venezuela’s oil operations alongside Repsol, Chevron, Eni and Shell. The authorization restores BP’s upstream access after years of U.S. sanctions and allows planning for new drilling and production activities.

Venezuela holds the world’s largest proven oil reserves, and U.S. officials expect foreign investments to drive substantial production gains this year. The eased sanctions framework could unlock access to existing fields and attract capital for development of additional upstream projects.

Restored operations in Venezuela offer BP a chance to boost its upstream portfolio and diversify its production mix, potentially enhancing long-term output and reserves replacement. The move also exposes BP to political and operational risks associated with Venezuelan reforms and oilfield management.