U.S. Administration Contemplates Policy Shift in Venezuela Oil Operations

The U.S. administration is considering authorizing Chevron and other key partners of Venezuela's PDVSA to operate with limited capacity under sanctions. This move marks a potential shift from a strict pressure strategy adopted earlier this year, aiming to maintain operational continuity without financially benefiting Maduro's government.

The Trump administration is evaluating new authorizations for U.S. oil major Chevron and other partners of Venezuela's state-run PDVSA, according to insiders. These permits would allow limited operations in the sanctioned nation, marking a deviation from Washington's recent pressure strategy targeting Venezuela's energy sector.

Under the proposed conditions, energy companies would be permitted to pay contractors and make essential imports, potentially swapping them for Venezuelan oil. The U.S. government remains firm that President Nicolas Maduro must not profit from any licit oil sales, a senior State Department official indicated.

In a backdrop of tense U.S.-Venezuela relations, these tentative authorizations come after the cancellation of numerous energy licenses earlier this year. While operational stakes remain intact for Chevron and its partners, the specifics of the authorizations, including their potential extension to European firms like Eni and Repsol, are still under negotiation.

(With inputs from agencies.)