California-based Chevron, which remains active in Venezuela thanks to a special license issued by the U.S., warned of ongoing uncertainties in the OPEC country following the tumultuous July 28 presidential election, the results of which remain in doubt.

Chevron said its independent affiliates continue to maintain reliable operations but that future finances in the country remain uncertain, according to an Aug. 7 Securities and Exchange Commission (SEC) filing by the company.

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Independent affiliates operate Chevron’s interests in Venezuelan assets. The company’s joint ventures (JV) in Venezuela include Petroboscán, Petroindependiente, Petropiar and Petroindependencia. Chevron recently received approval from the Venezuelan government to extend the Petropiar JV’s license through 2047 and the PetroIndependencia license through 2050, the company said in the filing.

Chevron continues to conduct limited activities in Venezuela according to an authorization provided pursuant to general licenses issued by the U.S. government.

General License 41, issued by the U.S. Office of Foreign Assets Control (OFAC) in November 2022, allows Chevron to maintain substantial operations to sustain and boost its production for both itself and Venezuela. Chevron said crude oil liftings in Venezuela started in the first quarter 2023, and have positively impacted the company’s results. 

Chevron’s financial results in Venezuela have been recorded as non-equity investments since 2020. Per the accounting treatment, Chevron only recognizes income when cash is received. Chevron’s production and reserves are not included in its results.

Maduro clings to power

Verified final results of Venezuela’s presidential election have not been released by Venezuela’s ruling party. On July 29, Venezuela’s president Nicolás Maduro was proclaimed the winner of the election by the South American country’s National Electoral Council (CNE).

Opposition candidate Edmundo González Urrutia also claimed victory for its. González ran in place of María Corina Machado, who was disqualified by Maduro’s government to run for the presidency.

U.S. Secretary of State Antony J. Blinken said at least 12 million Venezuelans voted in the election.

On Aug. 1, Blinken said that the processing of those votes and the announcement of results by the Maduro-controlled CNE “were deeply flawed, yielding an announced outcome that does not represent the will of the Venezuelan people.”

“Given the overwhelming evidence, it is clear to the United States and, most importantly, to the Venezuelan people that Edmundo González Urrutia won the most votes in Venezuela’s July 28 presidential election,” Blinken said.

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On July 30, the independent Carter Center also said that the CNE’s inability to provide the precinct-level official results, coupled with irregularities throughout the voting process, have stripped credibility from CNE’s announced results.

Blinken said that since the election, “we have consulted widely with partners and allies around the world, and while countries have taken different approaches in responding, none have concluded that Nicolás Maduro received the most votes this election.”

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