U.S. to Allow Chevron Limited Operations in Venezuela Amid Sanctions

Published 3 hours agoCVX

U.S. to Allow Chevron Limited Operations in Venezuela Amid Sanctions

The U.S. government is on the verge of issuing a narrowly tailored license to Chevron, permitting the company to perform essential safety and maintenance operations in Venezuela. This decision comes as Chevron's current license is about to expire within a week, a move initiated by the U.S. Treasury Department and shaped by guidance from the U.S. State Department, according to Reuters.

Chevron is one of the few international companies with operations in Venezuela, and its continued presence has been pivotal in a modest resurgence of the country's oil production since 2023. Reuters notes that despite having some of the world's largest oil reserves, Venezuela's output has significantly decreased in recent years due to factors such as underinvestment, mismanagement by the state-run firm PDVSA, and stringent U.S. sanctions implemented since 2019.

The limited license reflects a complex balance between geopolitical strategy and energy interests for the U.S. Although this new development signals a move towards maintaining safety and operational continuity, no official comments have been provided by Chevron or the involved U.S. departments regarding the decision.

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