US plans limited license for Chevron’s Venezuela operations

The Trump administration is preparing to issue a narrowly tailored license to Chevron Corp., allowing the oil company to conduct minimal maintenance of essential operations in Venezuela, according to people familiar with the matter.

The US Treasury Department is expected to grant a waiver that will permit Chevron to carry out only critical upkeep and safety-related functions in the South American nation, which remains under US sanctions. The individuals, who requested anonymity to discuss private deliberations, said the license would not authorise new investments or oil exports, Caliber.Az reports via Bloomberg.

This move follows the administration’s order for Chevron and other US companies to wind down their production activities in Venezuela. Secretary of State Marco Rubio confirmed this week that the current license allowing Chevron to operate in the country would expire as scheduled on May 27.

The State Department referred inquiries to Rubio’s statement and offered no further comment. The Treasury Department did not immediately respond to a request for comment.

Rubio’s announcement cast doubt on expectations that Chevron would receive a 60-day extension to its existing license. Earlier in the week, Ric Grenell, President Donald Trump’s special envoy, had indicated an extension was forthcoming after meeting with Venezuelan officials and securing the release of a US military veteran who had been imprisoned in the country.

It remains unclear whether other US firms operating in Venezuela will receive similar licenses.

The new, more restrictive waiver could serve as a strategic measure, potentially maintaining space for diplomatic engagement between the US and Venezuela. The license is expected to resemble the one Chevron held until November 2022, which allowed limited maintenance and presence in Venezuela but prohibited new investments and crude exports.

That earlier license had been due to expire in December 2022, but just days before, the Biden administration granted Chevron broader authorisation to produce and sell oil in Venezuela. The move aimed to encourage President Nicolás Maduro to reengage in negotiations with the opposition over a fairer presidential election in 2024—an election that was later widely deemed fraudulent.

The broader license was revoked by the Trump administration in late February of this year.

By Sabina Mammadli