(BFM Stock Exchange) – The oil group is declining strongly on the Paris Stock Exchange in reaction to the revocation by the United States of its specific license to exercise its oil activities in Venezuela.

The oil sector and parapetrolier is intimately linked to geopolitical news. Even more when this information concerns Venezuela, a country that is the subject of sanctions on the United States.

Maurel & Prom is indeed present in this country and operates the oil field of Uraneta Osta in Lake Maracaibo, via a mixed company called Petroregional del Lago. The French group holds 40% of this company, the remaining 60% belongs to PDVSA (Petroleos de Venezuela), an entity of the Venezuelan government.

To be able to carry out its activities in the country, Maurel & Prom benefits from specific licenses. They are granted by the Office for Foreign Assets Control (OFAC) to American and foreign groups to carry out transactions and activities related to the production, capture, sale or export of oil or gas in Venezuela, in a country struck by sanctions and an oil embargo.

However, since Donald Trump’s arrival at the head of the United States, tensions have mounted a notch between Washington and Caracas. The President of the United States does not recognize the re-election of Nicolas Maduro in 2024, and recently imposed a surcharge of 25% on any Buyer of Venezuelan oil, who must come into force on April 2.

A license revoked for Maurel & Prom

At the end of February, the license of the American oil group Chevron was for example revoked by the United States. This decision therefore intended that similar sanctions were also pronounced in the future for other oil groups operating in Venezuela.

These fears were confirmed, since Venezuela indicated Sunday, March 30 in the evening that the United States has indeed revoked the licenses of “transnational oil and gas companies”

Maurel & Prom announced this Monday, March 31 in a press release “having received a notification from the Office of Foreign Assets Control (OFAC) from the United States department, dated March 28, 2025, informing it that” the license granted in May 2024 for its activities in Venezuela was revoked “.

This revocation has no immediate effect, Maurel & Prom said it had obtained “a transition license” authorizing it “to carry out the transactions necessary for the conclusion of operations previously covered by the license now revoked”, until May 27.

“Maurel & Prom is currently assessing the implications of this decision in close consultation with its legal advice” and “actively remains in contact with the American authorities” continuing to follow “closely” the evolution of the situation, added the company.

“The group is not the only one affected by this decision which also applies to Chevron but also to Repsol and Eni,” said Oddo BHF in a note published this Monday morning.

The purpose of this decision in the United States is to economically kneel Venezuela and put pressure on its president, Nicolas Maduro. The goal being to “deprive him of the oil rent to force him to make democratic reforms and to accept to repatriate Venezuelan migrants”, specifies the design office.

“So this decision is not definitive and can be reversed at any time and it seems difficult to quantify its impact reliably, at this stage, especially the United States can reverse at any time if a political solution is found,” says Oddo BHF.

A “expected” decision

However, this announcement is logically poorly received on the Paris Stock Exchange. The oil group begins the week in the hard time, and dropped 15.6% to 4.792 euros, this Monday around 11:15 am.

The joint venture in the country contributes to the height of 10,000 barrels or 23% of the production and 32% of the reserves of Maurel & Prom, recalls the design office. To give a comparison order, the production of the French group (in proportion to its shares in its various projects) amounted to 36,222 barrels equivalent to oil per day last year.

For 2025, Maurel & Prom had indeed indicated to expect to receive 100 million euros in dividends from his joint venture in Venezuela. And the loss of these dividends could therefore, according to the design office, tip the available cash flow of this year, of 25 million euros, in the Red at -40 million euros.

“Venezuela represents 2.77 euros/share, or 29% of the re -evaluated net assets but this value will not be lost completely everything will depend on the duration of the sanctions”, wishes to put Oddo BHF into perspective, while adding that “part of this decision has been already integrated with the start of threats of sanctions on Venezuela”.

“Apart from Venezuela, the group is in a very comfortable position,” appreciates the design office. “He no longer has a debt and thus includes M&A initiatives (mergers acquisitions) in Colombia in search of growth and has just increased the dividend by 10%”, although the yield remains below the average of the sector, recalls Oddo BHF which remains in neutral on the title with a price target of 5.20 euros.