US Treasury Department's OFAC symbol imposed over the world map. File photo.
This Sunday, March 2, the United States Office of Foreign Assets Control (OFAC) announced on its website that it is preparing to eliminate the license that allows Chevron to operate in Venezuela, even though it was automatically renewed this Saturday until September 20.
In response to a recently updated frequently ask question, “How does treasury plan to implement the president’s February 26 announcement regarding energy-related authorizations in Venezuela?” OFAC responded as follows, contradicting itself:
“Treasury is preparing to take action to wind-down General License 41 and other specific licenses as appropriate. We will issue additional guidance to assist implementation concurrent with any changes to the authorization(s).”
Let us remember that this Saturday, OFAC did not make any changes to license 41 issued to Chevron, which allows the company to continue operating in Venezuela. However, many analysts, at this point, believe that the renewal was a result of the US bureaucratic apparatus’ inertia.
Taking into account the statutes governing the license granted by the United States government to Chevron, this renewal meant the extension of the permit for a period of six months. The validity of the permit would therefore be extended until September 1, 2025.
Economist and managing partner of EcoanalĂtica, AsdrĂşbal Oliveros, told UniĂłn Radio a few days ago that Chevron contributed between 200,000 and 250,000 barrels of oil to Venezuelan production.
US Renews Chevron’s License to Continue Petroleum Operations in Venezuela
If its activity in the country is stopped, he estimated that “we are talking about a loss of almost 4 billion dollars in oil revenues, which are revenues for the country, which has a direct impact on the flow of foreign currency, for example, selling on the exchange rate market, and that of course puts even more pressure on devaluation and inflation.”
Oliveros clarify that PDVSA, as main share holder of the joint ventures with Chevron, will take control of the oil fields left by Chevron, however, cash flow to the maintainance of oil pumping operations will be affected. Additionally, PDVSA will face difficulties looking for international markets for this oil output, thus putting additional pressure over the migration of Venezuelans.
(La IguanaTV) with Orinoco Tribune content
Translation: Orinoco Tribune
OT/JRE/SA
