US issues limited license for Chevron in Venezuela: Bloomberg
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The Trump administration issued a restricted license to Chevron to maintain its equipment in Venezuela without producing oil, aligning with ongoing US sanctions.
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Oil drills in Maracaibo Lake in Venezuela's oil rich Zulia state on November 30, 2006. (AP)
The Trump administration has issued a narrowly defined license to Chevron Corp. to continue limited operations in Venezuela, permitting only essential maintenance while prohibiting oil production, according to a Bloomberg report on Wednesday, adding that the decision aligns with the broader US sanctions policy targeting the Venezuelan energy sector.
The waiver, granted Tuesday by the US Treasury Department, echoes the terms Chevron operated under during Trump’s first term, and the move comes as a previous license, requiring Chevron and other oil majors to wind down their Venezuelan operations, was set to expire.
The newly issued Chevron Venezuela license allows the company to maintain existing equipment and assets in the country but strictly forbids any oil extraction or production. The decision reflects Washington's cautious stance on easing pressure on Venezuela, despite diplomatic signals and previous discussions around potential engagement.
A person familiar with the decision, speaking anonymously, confirmed to Bloomberg that the license limits Chevron’s role to non-production activities.
Rubio confirms end of production wind-down period
US Secretary of State Marco Rubio confirmed last week that the wind-down period for Chevron’s production activities would end as scheduled, contradicting earlier statements from Ric Grenell, a Trump administration envoy, who had suggested an extension might be in the works after returning from Venezuela with a US veteran who had been detained there.
Grenell had recently visited Venezuelan officials in what appeared to be an unofficial diplomatic engagement, returning with a US citizen who had been held in a Venezuelan prison, assuming that Chevron would receive an extended license. However, the final decision by the Treasury was more restrictive than anticipated.
According to Bloomberg, the tighter US oil sanctions on Venezuela may still leave space for behind-the-scenes diplomatic engagement, potentially viewed as a strategic compromise by both governments. While Chevron’s ability to maintain equipment ensures its future stake in the country, the ban on oil production reinforces Washington’s hardline stance.
It remains unclear whether other oil companies operating in Venezuela will receive similar licenses or face full operational shutdowns under the updated policy.
