The Trump administration has announced a reversal on its policy to end Chevron’s oil operations in Venezuela, now allowing the company to continue its operations. The announcement follows the finalization of the Chevron-Hess $53 billion merger. The deal gives Chevron access to Hess’ massive oil discovery off the shore of Guyana, a nation threatened by Venezuela over that same territory.
Trump Administration Reverses Course, Allows Restart of Chevron Operations in Venezuela – Venezuelanalysis
Source Link
Excerpt:
The Donald Trump administration has walked back a major sanctions policy by granting Chevron a new sanctions waiver to operate in Venezuela.
This week, the US Treasury Department issued a specific license allowing the Texas-based corporation to restart oil extraction and sales operations in the Caribbean nation. The Wall Street Journal first reported the move on Thursday.
White House and Treasury officials have yet to comment on the policy U-turn. Unlike general licenses, which are publicly disclosed, specific licenses can be issued privately to select firms.
A State Department official quoted by the Miami Herald offered no details on the new sanctions waiver but claimed that Washington “will not allow the Maduro regime to profit from the sale of oil.” However, both Venezuelan legislation and the fact that Chevron is a minority partner in joint ventures suggest that oil operations generate revenues for the Venezuelan state.
Chevron owns between 30 and 40 percent of shares in four joint ventures, with Venezuelan state oil company PDVSA owning majority stakes. The enterprises’ recent output stood between 200,000 and 250,000 barrels per day (bpd), roughly a quarter of the country’s total production.
The Herald report added that Chevron negotiated changes to its contract with PDVSA on Wednesday in Caracas, and that under the new arrangement, the company would pay its Venezuelan partner in barrels of oil.
