Overview

• The U.S. Treasury issued the restricted license on July 24, permitting Chevron to reengage in Venezuela after previous sanctions halted its exports.
• Under the terms, Chevron can oversee joint-venture decisions and fund procurement and contract payments but cannot transfer any oil proceeds to the Maduro administration.
• Chevron has not shipped Venezuelan crude since April, when PDVSA canceled its cargo allocations amid blocked mandatory payments.
• It remains uncertain if PDVSA will allocate export cargoes to Chevron given the prohibition on revenue transfers.
• Industry analysts forecast a gradual return of Venezuelan oil to U.S. refineries later this year, potentially adding over 200,000 barrels per day.