Key Points
- Chevron is in talks with the U.S. government to expand its operating license in Venezuela.
- The move would allow the company to increase its oil exports and sell to a wider range of buyers.
- This comes as the U.S. is negotiating a deal to import up to 50 million barrels of Venezuelan oil.
- President Trump is pushing for other U.S. companies like Exxon and Valero to re-enter Venezuela.
Chevron is in talks with the U.S. government to expand its operating license in Venezuela, a move that would allow it to increase crude oil exports and sell to a wider range of buyers. The negotiations come as Washington and Caracas are working on a deal to supply up to 50 million barrels of Venezuelan oil to the United States. President Trump has been actively pushing American oil companies to invest in the South American nation’s struggling energy sector.
Chevron is currently the only major U.S. oil company still operating in Venezuela, and it does so under a special authorization that exempts it from sanctions. However, the Trump administration imposed additional restrictions on that license in July, reducing Chevron’s exports to the U.S. by more than half and preventing the Venezuelan state oil company, PDVSA, from receiving any proceeds.
A new, expanded license would allow Chevron to return to its previous export levels. It would also let the company sell Venezuelan crude to its business partners in other countries, something it used to do before the latest round of sanctions. This has already sparked interest from some of Chevron’s former customers, including an Indian refiner.
The U.S. government is also trying to get other American companies back into the Venezuelan oil game. This includes refiner Valero and giants like Exxon Mobil and ConocoPhillips, whose assets were seized by the Venezuelan government two decades ago. The potential returns of these companies have reportedly added tension to the ongoing talks.
While the U.S. continues to enforce a broader oil embargo on Venezuela, recently seizing two tankers in the Atlantic, these negotiations with Chevron signal a potential shift in strategy.
The goal seems to be to use American companies to get Venezuela’s massive oil reserves flowing again, with the U.S. controlling the money to ensure it is used for approved purposes.
