PDVSA Grabs the Wheel as Chevron Gets the Boot

Julianne Geiger, a seasoned editor, writer, and researcher for Oilprice.com, reported on May 16, 2025, at 3:00 PM CDT that Venezuela’s state-owned oil company PDVSA is now in charge of crude shipments previously handled by Chevron. This change is due to sanctions issues and payment disputes disrupting the fragile oil agreement between Washington and Caracas. PDVSA recently sent a 920,000-barrel load of heavy Boscan crude, which was previously exclusively exported by Chevron, to Malaysia, a key trans-shipment point for crude destined for China. The shift occurred after PDVSA abruptly canceled Chevron’s planned May shipments, alleging non-payment, despite Chevron holding a valid U.S. license until May 27. As a result, PDVSA’s oilfields in the west are now at full storage capacity, prompting the company to seek floating storage solutions. April exports plunged by nearly 20%, falling to 700,000 barrels per day, the lowest level in nine months. The situation has halted Venezuela’s gradual export volume recovery under eased U.S. sanctions, with the reintroduction of strict measures, including a 25% tariff on Venezuelan oil buyers. Additionally, tensions have escalated regionally, with reports of armed Venezuelan civilians clashing with Guyanese forces near the Essequibo region, where ExxonMobil’s Stabroek Block is located. Elections in the disputed area are set for May 25, despite an ICJ ruling against unilateral actions. Companies like Chevron, Eni, and Repsol are lobbying the U.S. government to maintain their operations in Venezuela past May. However, PDVSA is now regaining control, and the destination of the crude may be influenced more by political factors than market prices.