Trump to revoke Chevron’s Venezuela oil license

Former US President Donald Trump announced his intention to revoke Chevron’s license to operate in Venezuela.

Chevron had been granted a license to produce and sell oil in Venezuela, despite sanctions against the government of Venezuelan President Nicolás Maduro. Under the license terms, Chevron would have a six-month wind-down period to exit Venezuela.

“We are reversing the concessions made to Nicolás Maduro, President of Venezuela, on the oil deal by crooked Joe Biden,” Trump stated on social media.

The former US leader cited concerns about Venezuela’s electoral conditions and the country’s failure to repatriate migrants to the US “as quickly as promised” as justification for the decision.

This move signifies an intensification of US restrictions on the South American country following Maduro’s re-election. American pressure on the struggling Venezuelan economy is expected to escalate further under Trump.

Venezuelan Vice President and Oil Minister Delcy Rodriguez issued a statement saying, “The United States government has made a harmful and inexplicable decision by announcing sanctions against the American company Chevron,” and argued that this action “harms the US, its people, and its companies” rather than harming the Venezuelan people.

Chevron is the last remaining US oil major in Venezuela and has served as a vital lifeline, helping to curb soaring inflation in recent years.

The company’s oil production, operated through joint ventures with state-controlled Petroleos de Venezuela, exceeds 200,000 barrels per day as of mid-2024. This figure represents approximately 20% of the oil-rich nation’s output and helps to bring total production to over 1 million barrels per day.

Chevron spokesperson Bill Turenne told Bloomberg via email, “We are aware of today’s announcement and are assessing the implications. Chevron conducts its business in Venezuela in compliance with all applicable laws and regulations, including the sanctions framework provided by the US government.”

The US government had permitted several other oil giants, including Reliance Industries of India, Repsol of Spain, and Maurel & Prom of France, to continue purchasing and producing Venezuelan crude oil. Trump’s announcement raises questions about whether these companies will be able to continue their operations.

Trump had been signaling the license revocation for weeks; both the former President and Senator Marco Rubio had indicated that Chevron’s operating license was under review.