Chevron Corp. said late on Oct. 18 it is optimistic about maintaining a presence in Venezuela even amid U.S. sanctions on the country and state oil company PDVSA as part of Washington's effort to oust President Nicolas Maduro.
The company's remarks follow an earlier report by Bloomberg that said the United States is considering extending Chevron's waiver to operate in Venezuela with more limitations by granting the company a 90-day sanctions reprieve.
"We are a positive presence in Venezuela, and we are hopeful that General License 8C is renewed so that we can continue operations in the country for the long-term," Ray Fohr, a Chevron spokesman, told Reuters in an emailed statement.
"We have dedicated investments and a large workforce who are dependent on our presence."
"General License No 8C" is the license that authorizes transactions in Venezuela involving PDVSA and entities it owns, according to the website of the U.S. Department of Treasury.
Chevron's future in Venezuela now depends on U.S. President Donald Trump, who must decide by Oct. 25 whether to renew the waiver allowing the company to keep operating in Venezuela despite U.S. sanctions.
The Treasury Department aims to further limit Venezuela's crude production and is concerned that Chevron's joint venture projects in Venezuela are providing financing to help Maduro's socialist government pay back its debt to Russian oil company Rosneft PJSC, Bloomberg reported on Friday. This could encourage more loans in the future.
The report added, however, that the United States also wants to maintain a presence in Venezuela's oil industry in case of a political transition.
Chevron has been present in Venezuela for nearly 100 years. It opened its Caracas office in 1923, and first struck oil at the Boscan field in 1946.
The Trump administration has several times imposed sanctions on Venezuela and sought to limit PDVSA's transactions to largely cut off Maduro's access to oil revenues, which account for most of the South American country's hard currency income.
The Treasury Department did not immediately respond to a Reuters request for comment late on Friday.
Recommended Reading
LM Energy to Expand Gas Gathering System in the Delaware
2024-05-13 - LM Energy is building new compressor stations and adding 70 miles of pipeline in the Delaware Basin.
ONEOK to Expand NGL Network Around Houston Through $280MM Acquisition
2024-05-13 - Easton Energy is agreeing to sell 450 miles of lines along Southeast Texas coast to ONEOK.
Enbridge Plans to Increase Permian Oil Pipeline’s Capacity
2024-05-10 - Midstream company Enbridge announced an open season on the Gray Oak Pipeline for a proposed 120,000 bbl/d expansion and updated its M&A efforts.
Energy Transfer Remains Hungry for M&A, Sees 1Q Oil Volumes Surge
2024-05-09 - Energy Transfer reported record first-quarter crude volumes and expects demand for petrochemicals to continue rising.
Energy Transfer Eyes Draft Environmental Statement for Blue Marlin Project This Quarter
2024-05-09 - Energy Transfer is among several firms vying to build deepwater ports along the Texas Gulf Coast.