Chevron Export Earnings Pump More Dollars Into Venezuela

Some of US oil major Chevron Corp.'s export earnings from its Venezuela operations are bolstering supplies of US dollars in the South American country, three sources with knowledge of the matter told Mayela Armas of Reuters.

Photo Insert: Chevron brings back some of its export earnings to Venezuela, exchanging them for the hugely devalued bolivar currency so it can pay taxes and other local expenses.

Chevron operates in Venezuela, which is under US sanctions, with special authorization from Washington. It received and exported about 148,000 barrels per day of Venezuelan heavy crude to the US in April.

Chevron brings back some of its export earnings to Venezuela, exchanging them for the hugely devalued bolivar currency so it can pay taxes and other local expenses, the three sources said, as the government keeps the exchange rate stable in a bid to control inflation.

"Chevron has to meet its commitments in bolivars ... it needs resources in Venezuela for the production at its fields to rise," said Asdrubal Oliveros, director of local analyst firm Ecoanalitica.

Since February the company has offered between $20 million and $30 million each week at exchanges run by private local banks, two of the sources said.

"We continue to conduct our business in compliance with all laws and regulations, as well as the sanctions framework provided by the US Office of Foreign Assets Control (USOFAC)," Chevron said in response. "Our focus is on supporting safe and reliable operations."

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