U.S. Allows Chevron To Pump Venezuelan Oil Anew

The US has granted Chevron limited authorization to resume pumping oil from Venezuela following the announcement that the Venezuelan government and the opposition group have reached an agreement on humanitarian relief and will continue to negotiate for a solution to the country’s economic and political crisis, including a focus on the 2024 elections, Sam Fossum reported for CNN.

Photo Insert: With the deal, Chevron can return to its joint ventures with the Venezuela national oil company, Petroleos de Venezuela SA (PDVSA).

A senior Biden administration official described the announcements as “important steps in the right direction,” but noted that there is still much to be done as both parties work toward a solution to the crisis.

The official also highlighted the license’s limited nature, saying that they do not expect this to have a tangible impact on international oil prices and that the move is intended as an inducement for the negotiations – not a reaction to high global oil prices.

The Treasury Department’s Office of Foreign Assets Control on Saturday issued Venezuela General License 41, which authorizes Chevron to “resume limited natural resource extraction operations in Venezuela,” according to a news release from the Treasury Department.

This is a 6-month license, and the US can revoke it at any time. Additionally, any profits earned will go to repaying debt to Chevron and not to the Maduro regime, according to the senior official, and states that the US government will continue to require significant reporting by Chevron on its financial operations.

In a report, Colin Easton, Patricia Garip and Andrew Restuccia of Wall Street Journal wrote that the US will require that Chevron report details of its financial operations to ensure transparency.

The approval came after Norway brokered a deal between the Maduro government and the opposition in Mexico City to tackle the humanitarian crisis, which was exacerbated by US sanctions, and hold elections.

With the deal, Chevron can return to its joint ventures with the Venezuela national oil company, Petroleos de Venezuela SA (PDVSA).

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