US Allows Oil Companies to Pay Taxes in Venezuela Without Sanction Risk
Oil companies operating in Venezuela will be able to pay taxes and royalties without sanctions if they comply with conditions set by the US.
TL;DR
- US Treasury Department issued a license allowing oil companies in Venezuela to pay local taxes and royalties without sanctions.
- Companies must deposit payments into a US-controlled account to avoid sanctions.
- This follows previous general licenses that eased some sanctions on Venezuelan crude oil.
- Contracts must adhere to US laws and dispute resolution must occur in the US.
- Venezuela holds the world's largest proven crude oil reserves, primarily heavy crude requiring advanced technology.
- Chevron is the only US oil company currently operating in Venezuela under a specific license.
- Chevron's joint ventures contribute approximately 27% of Venezuela's national production.