Shell Wins OFAC Licence to Resume Venezuela Operations Under $100bn Reconstruction Plan
US Treasury granted OFAC general licences allowing Shell to resume Venezuelan oil and gas operations and negotiate new contracts with PDVSA under payments routed through a US-controlled fund. The licences also support a $100 billion reconstruction plan but require additional approvals and bar transactions with Russian, Iranian or Chinese entities.
1. OFAC Licences Issued
In February 2026 the US Treasury's Office of Foreign Assets Control granted two general licences to global energy firms including Shell, Chevron, bp, Eni and Repsol, allowing them to resume operations and negotiate new contracts with Venezuela’s state-owned PDVSA.
2. Payment and Approval Requirements
All royalties and taxes from resumed Venezuelan operations must be routed through a US-controlled fund, and companies must secure additional OFAC approvals before finalising projects; the licences explicitly bar transactions with entities in Russia, Iran or China.
3. Strategic Impact and Reconstruction Plan
The licences underpin a broader $100 billion reconstruction plan aimed at revitalising Venezuela’s oil industry, potentially boosting Shell’s upstream production capacity and revenue streams while strengthening regional energy security partnerships.