Reportedly, Chevron Corporation (CVX), the last major U.S. oil company still operating in Venezuela, received a new U.S. government license allowing it to continue operations in Venezuela until Dec. 1, informed the Treasury Department. The previous deadline was June 3. In 2019, the United States imposed sanctions barring imports of Venezuelan oil and transactions made in U.S. dollars with PDVSA, Venezuela’s state-run oil company. The decision was put in place to starve the country of oil dollars and oust socialist President Nicolas Maduro.
The renewal of the license also applies to oil service companies Halliburton, Schlumberger Limited, Baker Hughes, and Weatherford International, to continue operations with restrictions. However, the companies are also not authorized to repair or improve wells, pay dividends to Venezuelan state-run PDVSA, negotiate any new loans, or hire additional staff or services.
The license allows the companies only to conduct transactions with PDVSA “necessary for the limited maintenance of essential operations in Venezuela or the wind down of operations” by Dec. 1.”
By not following the norms the companies would risk U.S. government sanctions or punitive measures. The renewal decision was welcomed by Chevron, the first under U.S. President Joe Biden and the eighth since 2019.
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Dow 30 component Chevron Corporation (CVX), through its subsidiaries, engages in integrated energy, chemicals, and petroleum operations worldwide. To learn more about Chevron (CVX) and to track their progress please visit the Vista Partners Chevron Page.