ConocoPhillips has been granted a series of licences to aid in the recovery of approximately $10bn owed to it by Venezuela, reported Bloomberg, citing sources.
The licences, issued by the US Government, enable the oil and gas company to pursue legal avenues to reclaim funds from the nationalisation of its assets by Venezuela more than a decade ago.
These are crucial for ConocoPhillips to navigate US sanctions while seeking recompense from Petroleos de Venezuela (PDVSA), the Venezuelan state-owned oil company.
As per the report, these measures do not indicate a resumption of ConocoPhillips' operations in Venezuela, as the company has not been active there since its assets were seized under the leadership of the late President Hugo Chavez.
A request for comment from the US Treasury Department's Office of Foreign Assets Control did not elicit a response.
According to the sources, the licences were granted in recent months, facilitating ConocoPhillips' efforts to secure funds from PDVSA's international accounts.
Earlier in the year, a court in Trinidad and Tobago ruled in favour of ConocoPhillips, allowing the enforcement of a $1.33bn (50.01bn bolivars) claim against Venezuela.
This judgment permits the seizure of Venezuelan assets from gas projects shared with Trinidad as compensation.
In the global context, where PDVSA has financial holdings, these US licences position ConocoPhillips advantageously among other creditors.
The company aims to be prioritised when PDVSA's funds are eventually distributed.
Venezuela, home to the world's largest oil reserves and a founding member of OPEC, has experienced a 70% decline in oil production since the early 2000s.
The government’s socialist policies have been detrimental to investment in oilfield technology and maintenance, contributing to the downturn of the Venezuelan oil industry.
The asset nationalisation that affected companies such as ConocoPhillips and ExxonMobil has deterred foreign investment and exacerbated the sector's decline.
Revitalising Venezuela's oil production now depends on financial and technological support from international sources.
