Control Risks’ risk assessment provided an international oil company with the confidence to move forward in applying for a licence to operate in Venezuela.
A recent loosening of US sanctions allowed certain companies to restart operations in Venezuela. Our client wanted to better understand the opportunities and risks of pursuing a project in the country. This client had particular concerns regarding the sanctions implications of their board composition and status as a US-listed company.
Analysis to identify exposure and mitigation
Our experts conducted a comprehensive analysis based on a thorough review of the existing sanctions regime, enforcement trends, and indirect risks arising from the political context. We also provided a detailed analysis of the implications of special licenses issued by the US government in 2022-23.
Our analysis identified numerous potential risks, distinguishing between specific regulatory, contractual, reputational, and operational issues. For each potential risk, we assessed the level of exposure as it would impact our client’s proposed operations in Venezuela and walked them through detailed mitigation measures. We also provided the client with an assessment of how sanctions risks would likely evolve under a variety of potential political scenarios in both Venezuela and the US.
Additionally, we drew on well-placed sources within the US government to analyse the specific sanctions implications of the client's board structure and US listing.
Finally, we conducted due diligence investigations into potential commercial partners to assess their level of exposure to sanctions in Venezuela.
Confidence moving forward
Our report helped the client better understand and prepare to mitigate the specific sanctions risks of their proposed operations in Venezuela. The client was able to discard certain concerns relating to its board and US listing and chose to move forward in applying for a license to operate in Venezuela.