U.S. License Opens Specific Oil Services in Venezuela as Companies Make Gradual Return
Key Facts
The U.S. Treasury Department did not announce a new license for oil services companies on October 27; it issued amended Venezuela licenses on September 28, including General License 48D, which authorizes the supply of certain goods and services to the country. The Office of Foreign Assets Control’s FAQs explain that License 48 permits services from the United States or by U.S. persons for oil and gas exploration, development and production. This amounts to targeted easing of restrictions on sector-related work, not a general, unconditional authorization to return to the market. The development comes as oil services companies have begun taking practical steps in Venezuela, though field activity remains limited. Days earlier, Halliburton had announced preliminary agreements to support energy development opportunities there.
The licenses OFAC announced on September 28 include 46E, 48D and 49B, and the agency describes License 48D as authorizing the supply of certain goods and services to Venezuela. OFAC says License 48 covers goods, technology, software and services related to the exploration, development and production stages, whether supplied from the United States or by a U.S. person. Examples it cited include maintaining equipment used in oil and gas activities, rehabilitating or repairing it, and providing spare parts needed to sustain production. But the license does not allow the establishment of new joint ventures or corporate entities in Venezuela for oil and gas exploration or production. It is also subject to other procedures and conditions, making its scope narrower than a full opening of the sector to U.S. companies. OFAC said the contract terms were amended in response to investment reforms made by the Venezuelan government since January 2026, and that Washington continues to support U.S. companies’ efforts to reinvest in the country.
On September 21, Halliburton announced it had signed memoranda of understanding with Eneva and WESCA to support energy development opportunities and help customers advance oil and gas projects in Venezuela. The company said it has nearly 9 decades of experience in the country, and that its local bases, operational capabilities and local expertise enable it to support customers. The memoranda reflect commercial interest in returning to energy projects, but do not establish that production work has begun or that there is an immediate commitment to specific investments. On October 19, Reuters reported that Weatherford, Baker Hughes, Halliburton and SLB were advertising dozens of jobs in Venezuela, describing this as an early sign that a Washington-backed plan to rebuild the energy sector was gaining momentum. The agency also reported that services companies were taking initial steps to move workers, rigs and equipment into the country under an oil revival plan targeting $100 billion in investment. Job postings and memoranda of understanding, however, remain indicators of preparedness; whether they turn into actual activity depends on the availability of equipment and the ability to put it to work.
The limited scale of current activity is underscored by drilling data Reuters cited from Baker Hughes: Venezuela had only two active drilling rigs during October. That figure puts hiring steps and preliminary agreements in the context of a sector that needs to rebuild its operational capacity, not merely gain access to services under the license. Reuters reported that Welligence Energy Analytics expects equipment deployment through the end of next year to focus on maintaining, reopening and repairing wells. The company believes this approach, alongside expansion plans by major oil companies, could help lift crude production to about 1.5 million barrels per day by late 2027, from 1.2 million barrels per day at the time of the report in October 2026. Welligence’s head of Latin America described the outlook for execution as “cautiously optimistic,” noting that the investment plan will take time. Meanwhile, Reuters said some major producers are seeking political stability and clear legal rules before committing to large investments, while The Associated Press noted that Chevron was the only U.S. oil company with a major presence in Venezuela when it announced its expansion.
The picture, then, combines a limited legal expansion of oilfield services, initial moves by services companies and a clear gap between those moves and the scale of existing field activity. OFAC’s examples indicate that maintenance, repairs and spare parts can support production continuity, but on their own they do not lift restrictions on establishing new entities or guarantee an immediate increase in output. The next steps will depend on companies executing projects and deploying equipment, as well as on clear rules and stability, which some oil companies say are necessary before committing substantial capital. Welligence’s projections place the equipment deployment phase, focused on well repairs and restarts, through the end of next year. The estimate of reaching 1.5 million barrels per day in late 2027 remains a forecast tied to those steps and producers’ expansion plans.