OFAC ISSUES NEW REGULATIONS REGARDING PDVSA RELATED SANCTIONS
On July 26, 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 8B extending the deadline established by General License 8A 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.
Originally, these transactions and activities had to be conducted before July 27, 2019. With General License 8B, OFAC’s authorization is extended through 12:01 a.m. eastern daylight time, October 25, 2019