The Trump administration has issued a limited authorization allowing Chevron (NYSE:CVX) to retain its stakes in Venezuelan oil joint ventures, despite the expiration of its broader operating license. The decision comes amid Washington’s tougher stance on Venezuela and aims to ensure no financial benefit reaches President Nicolas Maduro's government.
Chevron, along with several European energy firms, had been in negotiations with U.S. officials to maintain their holdings in the country. The new authorization mirrors terms of a license Chevron held between 2020 and 2022. While it allows asset preservation, the company is barred from operating oilfields, exporting Venezuelan crude, or expanding activities.
Chevron confirmed the expiration of General License 41B and emphasized its compliance with all U.S. regulations. The U.S. Treasury and Venezuelan state oil firm PDVSA have not commented on the matter.
Chevron Venezuela has notified local authorities and contractors about the new restrictions. As a result, all service and procurement contracts have been terminated. This follows the expiration of a wind-down period under the previous license, despite earlier U.S. statements suggesting a possible 60-day extension.
President Trump cited Venezuela’s lack of progress on democratic reforms and migrant repatriation as reasons for revoking the license. Meanwhile, Maduro’s government continues to denounce U.S. sanctions as part of an “economic war.”
Venezuela, home to the world's largest crude reserves and an OPEC member, has seen its oil production dwindle due to mismanagement, lack of investment, and ongoing sanctions since 2019. Chevron and other foreign partners had contributed to a modest production rebound to roughly 1 million barrels per day in recent years.
This decision underscores the complex balance between sanctions enforcement and safeguarding U.S. corporate interests abroad.