Chevron's Bold Move: Expanding Oil Ventures in Venezuela

Chevron is negotiating with the U.S. government to expand its license to operate in Venezuela. This expansion aims to increase crude exports to its refineries and other buyers. Meanwhile, Washington and Caracas are discussing deals to supply Venezuelan oil to the U.S., despite existing sanctions and a severe oil blockade.

Chevron is negotiating with U.S. authorities to expand its operating license in Venezuela, aiming to boost crude exports, four insiders revealed on Wednesday. This follows ongoing discussions between Washington and Caracas to secure up to 50 million barrels of Venezuelan oil for the U.S., amidst President Donald Trump's push for American investment in Venezuela's energy sector.

U.S. officials stated that proceeds from these imports will aid Venezuelan state energy company PDVSA in managing its inventory amidst harsh sanctions, with profits supervised by a U.S.-appointed trustee to finance American goods supplies to Venezuela. Currently, Chevron is the only U.S. major oil company still active in Venezuela under a special U.S. license that circumvents sanctions.

Expanded licensing would resurrect Chevron's export volumes and enable crude allocation to non-U.S. destinations, as previously practiced. Meanwhile, tensions rise as the U.S. encourages other companies, including Valero Energy and majors like Exxon Mobil and ConocoPhillips, to re-enter the Venezuelan oil market. Chevron, along with others, has yet to comment on these developments, ensuring U.S. backing for President Trump's initiative to assist Venezuelans.

(With inputs from agencies.)