Trump to Extend Chevron’s License to Operate in Venezuela
It was announced recently that the Trump administration is considering a plan to extend Chevron Corporation (NYSE:CVX)'s license to operate in Venezuela. Let's shed some light on the development.
An aerial view of an oil rig at sea, the sun glinting off its structure.
It was reported by Bloomberg this week that the White House is set to extend Chevron Corporation (NYSE:CVX)'s deadline to halt its operations by another 60 days as negotiations with the Maduro government continue. The move marks an abrupt shift from the Trump administration's earlier stance, when it gave the oil major until May 27, 2025, to wrap up its business in the South American country and leave. However, this also posed a threat to the United States' energy security itself, as around 240,000 barrels daily of Venezuelan crude was going to Gulf Coast refineries.
It must be noted that since 2022, Chevron Corporation (NYSE:CVX) has been operating in Venezuela despite the sanctions under a US Treasury-issued license to operate that automatically renewed on the first of each month. The energy giant has ramped up production to supply about 20% of Venezuela’s output and is now a key driver for the country's economic growth.
Chevron Corporation (NYSE:CVX) has big plans for its Venezuelan operations, aiming to boost exports from just one of them, Petropiar, by as much as 50% this year, to a total of 143,000 barrels daily. According to reports from Bloomberg, crude production across Chevron’s four joint ventures in Venezuela surpassed 250,000 b/d last week, up from 40,000 b/d in 2022 before the U.S. sanctions relief began. The American oil major's overall global output stood at 3.35 million boe/d in the first quarter of 2025, so its Venezuelan operations represent a significant chunk of its operations.
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