OFAC Again Extends Venezuela General License To Continue Authorization Of Limited Transactions Involving PdVSA And Winding Down Of Operations For Certain Entities

• Published date: 06 December 2021
• Subject Matter: International Law, International Trade & Investment
• Law Firm: Thompson Hine LLP
• Author: Mr Scott E. Diamond

On November 24, 2021, the Department of the Treasury's Office of Foreign Assets Control (OFAC) issued Venezuela-related General License 8I, "Authorizing Transactions Involving Petróleos de Venezuela, S.A. (PdVSA) Necessary for the Limited Maintenance of Essential Operations in Venezuela or the Wind Down of Operations in Venezuela for Certain Entities." This general license continues to authorize transactions and activities "ordinarily incident and necessary to the limited maintenance of essential operations, contracts, or other agreements," that:

1. are for safety or the preservation of assets in Venezuela;
2. involve PdVSA or any entity in which PdVSA owns, directly or indirectly, a 50% or greater interest; and
3. were in effect prior to July 26, 2019, for the following entities and their subsidiaries
   • Chevron Corporation
   • Halliburton
   • Schlumberger Limited
   • Baker Hughes, a GE Company
   • Weatherford International, Public Limited Company

The term "safety or the preservation of assets" covers transactions and activities necessary "to ensure the safety of personnel, or the integrity of operations and assets in Venezuela; participation in shareholder and board of directors meetings; making payments on third-party invoices for transactions and activities authorized" under this general license (or prior to April 21, 2020, if such activity was authorized at that time) as well as "payment of local taxes and purchase of utility services in Venezuela; and payment of salaries for...