US issues limited license for Chevron to continue in Venezuela

US issues limited license for Chevron to continue in Venezuela

The U.S. administration has granted Chevron Corporation (CVX) a narrow authorization to keep its assets in Venezuela, including its stakes in oil joint ventures with state company PDVSA, according to sources familiar with the decision [1]. This authorization, which came into effect on May 27, 2025, is a departure from the broader license previously extended by the Biden administration in late 2022, which allowed Chevron to produce and sell Venezuela’s crude oil.

Under the new authorization, Chevron is restricted from operating oilfields, exporting oil, or expanding its activities in Venezuela. The primary goal of this authorization is to avoid any possible payments to President Nicolas Maduro’s administration [1]. The U.S. Treasury Department, Chevron, and PDVSA have not yet responded to requests for comment.

This decision marks a shift in U.S. policy towards Venezuela, signaling a return to Trump-era policies that favor isolation and pressure over engagement. The new license is expected to resemble Chevron’s earlier license that expired in November 2022, strictly prohibiting new investments or crude exports while allowing minimal upkeep to ensure the safety of existing infrastructure [2].

The limited license comes as Chevron faces a looming deadline to wind down its operations in Venezuela, an OPEC nation with the world’s largest proven oil reserves. The current license for Chevron is set to expire on May 27, and the U.S. government will not renew it in its current form. This sudden policy shift has cast uncertainty over Chevron’s long-term presence in Venezuela [2].

Chevron’s continued presence in Venezuela, even in a limited capacity, reflects the strategic value of its joint ventures with PDVSA. However, with this latest move, Chevron may now face an extended period of non-operational status, hampered by strict limitations that prevent it from generating revenues or advancing production capabilities [2].

The decision to restrict Chevron’s operations is part of a broader campaign by the Trump administration to intensify pressure on Nicolás Maduro and disrupt the financial networks supporting his regime. This policy development coincides with heightened diplomatic activity, including a meeting between Senator Marco Rubio and five opposition aides from Venezuela who escaped persecution from the Maduro regime [2].

The limited license for Chevron could serve as a strategic compromise, offering a middle ground that allows the United States to maintain some influence in Venezuela without appearing to support the Maduro regime. This restrained approach may also leave open the possibility for future diplomatic negotiations, though the Trump administration has clearly emphasized a harder line [2].

Chevron’s long-term strategy and operational footprint in Venezuela remain uncertain, with the company facing strict compliance and reporting requirements to ensure no indirect support reaches the Maduro regime. The new authorization reasserts American leverage while holding Chevron in strategic limbo, poised between compliance and opportunity in one of the world’s most geopolitically complex oil markets [2].

References:
[1] https://www.stabroeknews.com/2025/05/27/news/world/us-grants-chevron-narrow-authorization-to-keep-assets-in-venezuela-sources-say/
[2] https://finance.yahoo.com/news/chevron-may-receive-limited-maintenance-103500945.html