U.S. Extends Chevron’s License to Operate in Venezuela

According to an undisclosed source, the U.S. government will extend Chevron’s waiver to operate in Venezuela for another 60 days as negotiations with the Maduro administration progress. Initially, Chevron was given a 30-day notice to wrap up its operations in Venezuela, which could have disrupted the supply of heavy crude to Gulf Coast refineries. However, the government later granted Chevron the extension to continue producing oil and supplying U.S. refiners, as the company contributes significantly to Venezuela’s oil output. Chevron had plans to increase exports from its Petropiar operation by 50% this year, and these plans may proceed if Trump considers swapping more sanctions for tariffs and extending the company’s license. In April, the U.S. president signed an executive order to impose a 25% tariff on countries buying Venezuelan crude, causing some major oil importers to stop purchases, although flows continued. Negotiations between the U.S. and Venezuelan governments are ongoing, with a focus on repatriating illegal immigrants. This development could positively impact Chevron’s future plans in Venezuela, which holds the world’s largest crude oil reserves.