OFAC ISSUES NEW REGULATIONS REGARDING PDVSA RELATED SANCTIONS

Published 23 October 2019 by Diaz Reus

On October 21, 2019, the Office of Foreign Assets Control (“OFAC”) issued new regulations regarding its sanctions on Petróleos de Venezuela, S.A. (“PDVSA”). Specifically, OFAC issued General License 8D extending the deadline established by General License 8C for Chevron Corporation, Halliburton, Schlumberger Limited, Baker Hughes, Weatherford International, and the subsidiaries of these companies, to conduct all the transactions and activities ordinarily incident and necessary to the maintenance of operations, contracts, or other agreements in Venezuela involving PDVSA or any entity in which PDVSA owns, directly or indirectly, a 50% or greater interest; and that were in effect prior to July 26, 2019. 

Originally, these transactions and activities had to be conducted before October 25, 2019. With General License 8D, OFAC’s authorization is extended through 12:01 a.m. eastern daylight time, January 22, 2020.