US authorities issue license allowing Chevron to import Venezuelan oil

The second largest oil company in the US, Chevron, has received an expanded US license allowing it to resume production in Venezuela and to import the Latin American country’s crude into the United States.

"The decision allows Chevron to revive existing oil projects in the US-sanctioned country and bring new oil supplies to refiners in the United States. However, it restricts cash payments to Venezuela, which could reduce the amount of oil available to Chevron", CNBC reported.

License terms are designed to prevent Venezuelan state-run oil firm Petróleos de Venezuela (PDVSA) from receiving proceeds from Chevron’s Venezuelan petroleum sales, US officials said. The license will last for six months and will be automatically renewed monthly thereafter, according to the US Treasury.

The terms will prohibit the California-based oil giant from helping the OPEC member develop new oilfields but provides a way for the company to recoup some of the billions of dollars owed by PDVSA through the oil sales. The United States said it reserved the right to rescind or revoke the license at any time.