Chevron will terminate Venezuela’s contract and maintain the presence of national staff
Kelly Saberi of Fox Business reports on how Trump’s foreign policy ties with Venezuela will affect Chevron’s oil production.
Chevron is finished Oil productionthe services and procurement agreements that had to operate in Venezuela have delegated joint venture governance to its partner, the state company PDVSA, but it plans to maintain direct staff across the country, four sources close to the decision told Reuters.
The state and Treasury had received Venezuelan crude oil, fuel and by-product cargo from companies such as Chevron, Maurel & Prom and Repsol until May 27, and was recognized as a recognized approval. Biden administration It was revoked amid the Trump administration’s stricter stance on Venezuela approved by the US government.
Other customers also received recent cargo ahead of the deadline to remove packages from Venezuela.
Chevron has terminated an oil production, service and procurement contract that it had to operate in Venezuela. (Dado Ruvic/Reuters/Reuters)
PDVSA in April cancelled the shipment scheduled for delivery to Chevron. It cited payment uncertainty related to US sanctions that reduce the time it takes to close these transactions.
The licence for operations in Venezuela ended Tuesday, but sources told Reuters that Chevron had received guidance from. Trump administration This will help you maintain your Venezuelan stock, assets and staff.
Following the new guidelines, Chevron executives will meet this week with top Venezuela officials, including contractors and oil minister Delsy Rodriguez, to inform them of their next steps, sources said.
Chevron CEO Mike Worth will give a keynote address for the gathering of top energy executives and ministers in Houston for the annual Gastec Conference held in Houston, Texas on September 17, 2024. (Callaghan O’Hare/Reuters/Reuters)
Under the new approval, Chevron cannot export oil or expand its activities as it intends to run oil fields in Venezuela and avoid paying for President Nicolas Maduro’s administration.
The US Treasury did not reply to requests for comment. Chevron said it complies with all applicable laws and regulations, including the sanctions framework provided by the United States.
“The attacks and illegal activities on PDVSA have not stopped us from growing,” the state company said in a statement Wednesday, adding that Output at oil fields It was normal. “A license is not required to contribute to economic growth.”
The licence to operate in Venezuela ended Tuesday, but sources told Reuters that Chevron had received guidance from the Trump administration that it would allow Venezuela to maintain its shares, assets and staff. (Jonathan Raa/Nurphoto via Getty Images/Getty Images)
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Without the license, analysts predict that Venezuela’s oil production and exports will decline by 15-30% by the end of 2026.
Nicolas Maduro’s Venezuelan government has refused sanctions, saying officials are equivalent to an “economic war.”
Reuters contributed to this report.