The US Government is working towards granting US oil company Chevron, a partner of Venezuela's state-run oil company Petroleos de Venezuela (PDVSA), limited authorisations to resume operations in Venezuela, reported Reuters.
This move could signal a policy shift from the stringent sanctions imposed on the OPEC nation's energy sector since 2019.
If approved, these authorisations would allow both Chevron and PDVSA's European partners to conduct business within certain constraints.
This development could constitute a departure from the pressure strategy that the US has maintained this year against Venezuela's oil industry.
The Trump administration is considering allowing some PDVSA partners to pay oilfield contractors and import essential goods to ensure operational continuity.
Some imports may be exchanged for Venezuelan oil, a practice previously authorised under certain licences, according to three sources familiar with the matter.
A senior US State Department official stated that they could not discuss any specific licences for PDVSA's partners but emphasised that the US would prevent the Venezuelan Government from profiting from oil sales.
Meanwhile, Venezuelan President Nicolas Maduro praised efforts to keep Chevron in the country, indicating that working groups are being formed for this purpose.
This move follows a recent prisoner exchange, which saw the release of ten US detainees by Maduro and the return of more than 200 Venezuelans previously deported from the US.
The easing of restrictions on Venezuela's oil sector comes against a backdrop of tense relations and political disagreements between the two nations.
In February, Trump cancelled several energy licences in Venezuela, including Chevron's, and set a deadline for winding down transactions by late May.
This left PDVSA in control of joint venture operations, although foreign companies were allowed to maintain their stakes.
The US State Department is now imposing conditions on any changes to authorisations, ensuring that no funds reach Maduro's government.
Despite previous assurances that oil proceeds would not benefit Maduro, PDVSA's tax and royalty demands before export permits have resulted in financial gains for the Venezuelan Government.
US Secretary of State Marco Rubio is reportedly negotiating the scope of potential authorisations, which may also affect other foreign companies in Venezuela, such as Italy's Eni and Spain's Repsol, which have sought permission to exchange fuel supplies for Venezuelan oil.
The terms of the licences and their public disclosure remain uncertain.
In June, PDVSA reportedly signed at least nine new agreements with foreign service providers including two Chinese companies to maintain oil production and sustain foreign currency inflows following the exit of Chevron due to US sanctions.
