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Chevron Secures U.S. License to Resume Operations in Venezuela Under Revenue Ban

The six-month authorization grants Chevron decision-making authority in its Venezuelan joint ventures along with procurement and contract payment powers, with no cash flows allowed to President Maduro’s government.

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.