A Chevron refinery in Segundo, California. Photo: Eric Thayer/Bloomberg/file photo.
Caracas (OrinocoTribune.com)—The Trump administration has quietly renewed a license for US oil company Chevron to restart operations in Venezuela, sources close to the negotiations confirmed to the Wall Street Journal (WSJ) and other mainstream outlets.
According to WSJ, the decision was discussed alongside the exchange of 10 US nationals sentenced for several crimes and signals a shift in Washington’s aggressive policy against the Caribbean country. Some sources claim that the move follows Chevron’s refusal to comply with the US Office of Foreign Assets Control (OFAC) license revocation and its stalled divestment plan.
Venezuelan Oil Minister Delcy RodrĂguez repeatedly asserted that Venezuela’s oil production and exports have continued to grow despite the Trump administration’s license revocation. On June 4, RodrĂguez confirmed that all international oil companies maintain full production, refuting reports of declining extraction activity. “At this time, Chevron is at full production,” she declared at the World Retailers Congress in Caracas. “At this time, ENI’s fields are at full production. At this time, Repsol’s fields are at full production,”
Venezuela’s oil production registered slight growth in June, reaching 1.1 million barrels per day according to OPEC’s direct sources report. Production rose by 3,000 barrels daily from May, while secondary sources reported 910,000 barrels daily. This discrepancy is common in countries under illegal US sanctions.
The new conditions allow Chevron to resume joint activities with Petróleos de Venezuela (PDVSA) under specific terms. Chevron shares reached US $155.93 Thursday—their highest since April 3 per LSEG data. Like previous licenses, this permit lets the company pay obligations to Venezuela with crude oil instead of cash, avoiding direct currency transfers.
Sources inform the “specific” (not general) license classification permitted approval without immediate public disclosure. The US State Department told the WSJ the primary goal is letting Chevron recover US $3 billion in debts from joint PDVSA projects.
Reuters reported that the US may now allow energy companies to pay oilfield contractors and import necessary supplies for operational continuity. Some imports could be swapped for Venezuelan oil as in previous licenses.
Impact on the Venezuelan industry
Chevron accounted for 23% of Venezuela’s oil output before the revocation of license in May. Its return to the field could boost activity in key fields such as Petropiar, its major joint venture with PDVSA, Venezuela’s publicly owned petroleum producer. Other sanctioned foreign companies—including Repsol (Spain), ENI (Italy) and Reliance (India)—might also receive similar US “benefits.”
Washington: There is ‘No Confusion,’ Chevron Will Lose License in Venezuela on May 27
The measure comes amid ongoing US–Venezuela negotiations led by Jorge RodrĂguez, president of Venezuela’s National Assembly. Both countries have reportedly considered reopening embassies, though no official progress has been confirmed.
The eased restrictions follow this month’s prisoner swap, whereby President Maduro released 10 US nationals convicted of criminal and terrorist charges while repatriating 252 Venezuelan migrants who were illegally deported from the US and imprisoned in El Salvador’s infamous CECOT prison.
Venezuelan crude oil remains key to regional geopolitics as Washington balances regime-change policies with energy interests. Chevron’s license revocation earlier this year further damaged Venezuela’s energy industry, which has been under US sanctions since 2015. These sanctions were intensified during Trump’s first term in 2017.
Special for Orinoco Tribune by staff
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