Chevron’s Return to Venezuela – Probable Terms of License Renewal (Reuters) – Orinoco Tribune – News and opinion pieces about Venezuela and beyond

Although the terms and conditions of the renewal of operations of US oil company Chevron in Venezuela are not clear, there have been advances regarding authorization by the Joe Biden administration.

The US Treasury Department is preparing the license renewal for Chevron’s crude oil extraction in Venezuela. However, according to information from Reuters, the firm may not be getting the “extended terms it was looking for.”

Reuters also disclosed that, in March, Chevron had requested US President Biden to allow an expansion of its operations in Venezuela, in joint ventures with Venezuelan state company Petróleos de Venezuela (PDVSA).

“In a reversal of earlier hopes for an expanded clearance,” claimed Reuters, “Chevron’s license is now expected to be renewed as it is or similar to the terms it had back in 2020. Such terms did not limit Chevron’s drilling, processing or shipping of oil from Venezuela.”

Since the announcement of the US government’s willingness to resume oil extraction in Venezuela was made, it was stated that the procedures would be discussed with the government of President Nicolás Maduro “in the future.”

According to Reuters, US officials are now waiting for the Venezuelan government to set a date to resume negotiations with the Venezuelan opposition, a possible determinant in the renewal of Chevron’s license.

As the United States and the European Union increase sanctions on Russia to exert pressure over the Ukrainian conflict, the boomerang effect has generated a greater impact on the US itself, due to a sustained increase in fuel prices and the risk of shortages.

Featured image: Chevron oil company worker at a refinery. Photo: RedRadioVE.

(RedRadioVE) by José Manuel Blanco Díaz

Translation: Orinoco Tribune

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