On 1 June 2021, the US Office of Foreign Assets Control (OFAC) extended the provisions of General License 8G, authorizing certain PdVSA-related transactions and activities for some US-based energy corporations.
he license is entitled ‘Authorizing Transactions Involving [PDVSA] Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Wind Down of Operations in Venezuela for Certain Entities’. The extended license, now named GL 8H, is extending the authorizations contained in GL 8G through 12:01am Eastern Standard Time on 1 December 2021.
Like its predecessors, GL 8H has limited effect and does not eliminate the US sanctions targeting PdVSA or the Venezuela oil sector, which remain in place, the Standard Club informed.
However, it authorizes certain PdVSA-related transactions and activities for the following US-based corporations: Chevron Corporation, Halliburton, Schlumberger Limited, Baker Hughes Holdings LLC, and Weatherford International. Broadly speaking, GL 8H allows these entities additional time to wind-down their activities in Venezuela.
Among other exceptions, GL 8H expressly excludes from its general authorization the following:
- The drilling, lifting, or processing of, purchase or sale of, or transport or shipping of any Venezuelan-origin petroleum or petroleum products.
- The provision or receipt of insurance or reinsurance with respect to the drilling, lifting, processing of, purchase or sale of, or transport or shipping of any Venezuela-origin petroleum or petroleum products.
- Any transactions or dealings related to the exportation or reexportation of diluents, directly or indirectly, to Venezuela.
Members should therefore continue to exercise due diligence with respect to any transaction that might involve PdVSA or Venezuela petroleum or petroleum products and seek advice where appropriate,
…advised Gina Venezia, General Counsel, Standard Club.