U.S. oil major Chevron Corp. has dismissed around 20 employees in Venezuela as part of a global restructuring prompted by the sharp drop in crude prices, two people familiar with the matter said.
The move comes ahead of the Dec. 1 expiration of Chevron's license to continue operating in Venezuela despite U.S. sanctions on state oil company Petroleos de Venezuela , part of the Trump administration's efforts to choke off revenue to President Nicolas Maduro's government.
A Chevron spokesman confirmed that the company was making an "organizational adjustment" in Venezuela, as part of the global reduction in headcount by 10%-15% prompted by the crude price plunge and drop in oil and gas demand spurred by the COVID-19 pandemic.
The spokesman said the change "does not change the company's long term view on our activities" in Venezuela, where it hopes to "return to normal activities in due course."
Before the layoffs, the company had about 300 direct employees in Venezuela, an OPEC member with some of the world's largest crude reserves, but which has for years been mired in an economic collapse. The firm has minority stakes in four oil joint ventures with PDVSA and operates an offshore gas exploration block.
The U.S. government granted Chevron and a handful of U.S. oilfield services companies licenses to maintain operations in Venezuela when it sanctioned PDVSA last year, which it subsequently renewed several times.
But in April, the government issued a stricter license barring the company from drilling in the nation or trading Venezuelan oil, while allowing it to hold onto its assets. Chevron impaired the $2.6 billion value of those assets in July.
The Chevron spokesman said the company remained "hopeful" the license would be renewed, but did not specify under which terms. The Treasury Department, which enforces sanctions, did not immediately respond to a request for comment.
Recommended Reading
Exclusive: Silixa’s Distributed Fiber Optics Solutions for E&Ps
2024-03-19 - Todd Chuckry, business development manager for Silixa, highlights the company's DScover and Carina platforms to help oil and gas operators fully understand their fiber optics treatments from start to finish in this Hart Energy Exclusive.
CERAWeek: AI, Energy Industry Meet at Scary but Exciting Crossroads
2024-03-19 - From optimizing assets to enabling interoperability, digital technology works best through collaboration.
Cyber-informed Engineering Can Fortify OT Security
2024-03-12 - Ransomware is still a top threat in cybersecurity even as hacktivist attacks trend up, and the oil and gas sector must address both to maintain operational security.
Forum Energy Signs MOU to Develop Electric ROV Thrusters
2024-03-13 - The electric thrusters for ROV systems will undergo extensive tests by Forum Energy Technologies and SAFEEN Survey & Subsea Services.
Axis Energy Deploys Fully Electric Well Service Rig
2024-03-13 - Axis Energy Services’ EPIC RIG has the ability to run on grid power for reduced emissions and increased fuel flexibility.