US Treasury says oil firms must pay local taxes to Venezuela while royalties go to American fund
The US Treasury Department clarified today that oil companies must pay local fees to Venezuela while royalties go to a US fund. This follows recent licenses.
Insights:
The U.S. Treasury Department issued a Frequently Asked Questions document today, February 18, 2026, clarifying the financial obligations for companies working in the Venezuelan oil sector. This guidance follows the issuance of two general licenses on February 10, which lifted certain sanctions and authorized specific oil-related activities. The new rules define how payment flows must be managed by entities such as Chevron Corporation and other international firms operating in the region.
Under the new directives, the United States 
US requires that companies pay local taxes, permits, and fees directly to the government of Venezuela 
VE. However, a different mechanism is mandated for other financial obligations. Royalties, fixed per-barrel levies, and federal taxes must be directed into Foreign Government Deposit Funds managed by the United States. This dual-track system establishes clear compliance obligations for oil activity authorized under the recently issued Treasury general licenses.
US requires that companies pay local taxes, permits, and fees directly to the government of Venezuela VE. However, a different mechanism is mandated for other financial obligations. Royalties, fixed per-barrel levies, and federal taxes must be directed into Foreign Government Deposit Funds managed by the United States. This dual-track system establishes clear compliance obligations for oil activity authorized under the recently issued Treasury general licenses.
