President Donald Trump's administration has granted Chevron the authorization to resume its oil extraction operations in Venezuela, as confirmed by sources familiar with the ongoing negotiations reported by The Wall Street Journal. This partial lifting of restrictions marks a noteworthy shift in U.S. energy and foreign policy regarding the Nicolás Maduro regime.
The Trump Administration has issued a new license that allows the oil giant Chevron to restart its activities in the South American nation, diverging from previous hardline measures in an effort to balance energy interests with the Maduro government. Unlike a general license, this agreement grants a "specific license," enabling Chevron to engage in more regular activities with PDVSA, Venezuela's state-run oil company.
The deal follows weeks of high-level discussions involving President Trump and Secretary of State Marco Rubio. Despite previous sanctions imposed by former administrations, Chevron remains one of the few foreign companies that never completely severed its ties with Venezuela. The company retains stakes in several joint ventures with PDVSA, although Trump had issued an ultimatum in March to terminate these agreements with the South American nation.
However, this decision has sparked mixed reactions among both Republican and Democratic lawmakers, many of whom caution against the risks of legitimizing Maduro's regime. The U.S. Treasury and State Departments are expected to formalize the terms of the license granted to Chevron in the coming days, including potential export limits and controls on payments to Venezuelan officials.
When contacted by El Nuevo Herald, the State Department indicated that the license was issued solely for maintenance purposes by Chevron and to create the necessary conditions for the regime to address its substantial debt to the Texas-based oil company. "While we cannot comment on specific licenses, the U.S. government will not allow the Maduro regime to profit from oil sales," the entity stated in an email to the Miami Herald.
Venezuela's debt to Chevron was estimated at around $3 billion before it was reduced following President Joe Biden's decision to grant the Texas company a license to operate in the country, which was subsequently revoked by the Trump administration earlier this year. Chevron was responsible for approximately a quarter of Venezuela's oil production, which was about 900,000 barrels per day at the beginning of this year, as reported by El Nuevo Herald.
Chevron's Operations in Venezuela: Key Questions Answered
Why did the Trump administration allow Chevron to resume operations in Venezuela?
The Trump administration allowed Chevron to restart operations to recalibrate U.S. energy interests with the Maduro regime, indicating a shift from previous hardline policies.
What does the specific license issued to Chevron entail?
The specific license permits Chevron to resume regular activities with PDVSA, despite previous sanctions, but includes potential export limits and controls on payments to Venezuelan officials.
How has the decision affected Chevron's operations in Venezuela?
Chevron, responsible for about a quarter of Venezuela's oil production, can now continue its joint ventures with PDVSA, helping manage Venezuela's significant debt to the company.