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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.

The Chevron logo is pictured after the U.S. government granted a six-month license allowing Chevron to boost oil output in U.S.-sanctioned Venezuela, in Caracas, Venezuela, December 2, 2022. REUTERS/Gaby Oraa/File Photo
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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.