Venezuela Explores European Investment as US Greenlights Diluent Exports

The US Treasury loosened restrictions on diluent imports from the US and could soon issue a license allowing companies to extract crude in Venezuela.

Feb. 8, 2026 at 2:23pm

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The Venezuelan government has held meetings with oil executives from Spanish company Repsol and French company Maurel & Prom to discuss strengthening production and building strategic alliances amid US pressure and sanctions. This comes as the US Treasury has loosened restrictions on diluent imports from the US and is preparing to issue a license allowing US companies to extract crude in Venezuela. The Trump administration has sought to control Venezuela's oil sector and impose favorable conditions for US corporations, while also reducing the presence of Russian and Chinese companies.

Why it matters

Venezuela's oil industry has been hard hit by US sanctions and coercive measures since 2017, as part of efforts to strangle the Venezuelan economy and bring about regime change. The recent reform of Venezuela's Hydrocarbon Law aims to attract investment by giving corporations increased control over crude extraction and exports, while allowing the Venezuelan government to reduce taxes and royalties. This reflects the government's efforts to revive the key industry, but also raises concerns about the implications for the state's role and the distribution of oil revenues.

The details

The Venezuelan government, represented by acting president Delcy Rodríguez and state oil company PDVSA, has held meetings with executives from Repsol and Maurel & Prom to discuss establishing 'strategic alliances' and 'win-win cooperation'. The Hydrocarbon Law reform gives corporations more control over crude extraction and exports, while allowing the Venezuelan government to discretionally reduce taxes and royalties. Meanwhile, the US Treasury has loosened restrictions on diluent imports from the US and is preparing to issue a license allowing US companies to extract Venezuelan crude. The Trump administration has sought to control Venezuela's oil sector and impose favorable conditions for US corporations, while also reducing the presence of Russian and Chinese companies.

  • On Tuesday, the US Treasury Department issued a license allowing Venezuelan imports of US diluents required to upgrade extra-heavy crude into exportable blends.
  • On January 27, Washington issued a sanctions waiver allowing US companies to purchase and market Venezuelan crude.

The players

Delcy Rodríguez

The acting president of Venezuela who held meetings with oil executives.

Héctor Obregón

The president of state oil company PDVSA who represented the company in the meetings.

Repsol

A Spanish oil and gas company that holds stakes in several oil and natural gas joint ventures in Venezuela.

Maurel & Prom

A French oil and gas company that holds stakes in several oil and natural gas joint ventures in Venezuela.

Scott Bessent

The US Treasury Secretary who told House Representatives that the flow of oil funds will be subject to outside audits.

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What they’re saying

“We discussed the models established in the reformed Hydrocarbon Law to strengthen production and build solid alliances toward economic growth.”

— Delcy Rodríguez, Acting President of Venezuela (Twitter)

“The flow of oil funds will be subject to outside audits.”

— Scott Bessent, US Treasury Secretary (House of Representatives)

What’s next

The US Treasury is reportedly preparing a license to allow US companies to extract Venezuelan oil, according to Bloomberg.

The takeaway

The Venezuelan government's efforts to attract European investment and the US's moves to exert control over Venezuela's oil industry highlight the ongoing power struggle over the country's key resource. This reflects the broader geopolitical tensions and the potential implications for Venezuela's economic and political future.