Phase Two of the Reset: OFAC Opens the Door for Investment and Specific Operators
Following the "stabilization" licenses issued earlier this month (GL 46, 47, 48, and 30B), OFAC has released General Licenses 49 and 50, marking a pivotal shift from simply keeping the industry afloat to laying the legal groundwork for its expansion.
Here's how today's releases fit into the systematic reopening of Venezuela's energy sector:
GL 49: The Investment Authorization
This is the license that transforms deal-making from prohibited to permissible.
Previously, companies risked sanctions exposure just by discussing new Venezuelan projects. GL 49 explicitly authorizes the negotiation and entry into contingent contracts for new oil and gas investment.
What's authorized: new exploration, development, and production activities; expansion of existing operations; formation of new joint ventures; and commercial, legal, technical, safety, and environmental due diligence.
You can sign MOUs, submit bids to public tenders, and execute binding contracts — provided they are contingent on future OFAC authorization.
This solves the "chicken and egg" problem: companies can now conduct the extensive due diligence necessary to evaluate multi-billion-dollar commitments without sanctions risk, even though execution requires subsequent, specific authorization.
GL 50: The Authorized Operator List
While GL 46 opened operations for "Established U.S. Entities" generally, GL 50 is a targeted authorization for specific entities listed in its Annex to conduct oil and gas sector operations in Venezuela: BP PLC, Chevron Corporation, Eni S.p.A., Repsol S.A., and Shell PLC.
The same financial controls apply: oil taxes and royalties must flow to Foreign Government Deposit Funds (E.O. 14373); contracts governed by U.S. law with U.S. dispute resolution venue; local operational expenses (taxes, permits, fees) can be paid directly; no Chinese, Russian, Iranian, North Korean, or Cuban involvement; and mandatory reporting.
The Strategic Architecture
If the first wave of licenses (January 29 – February 10) was about restarting the flow of oil — production, diluents, services, logistics — today's wave (February 13) is about restarting the flow of capital.
By authorizing contingent contracts (GL 49) and licensing specific supermajors (GL 50), the U.S. has created a regulated channel for the massive capital injection required to repair Venezuela's degraded infrastructure, while it remains under strict Treasury oversight.
What This Means
The framework appears now complete. Six interlocking licenses covering operations, inputs, logistics, investment negotiations, and direct authorizations for major players. Venezuela's oil sector isn't simply "open for business" — it's open for structured, compliant business under comprehensive U.S. financial control.
Ramón Andrade is a Partner at Ponte Andrade Casanova (PAC) in Caracas, where he leads the firm's energy, natural resources, and project finance practice.