Chevron Corporation (NYSE:CVX) is currently in discussions with the United States government regarding its special license to operate in Venezuela. The talks, reported on January 9, focus on expanding the license to allow the company to return to previous export volumes.
The American oil giant is the only U.S. company still active in Venezuela, operating under a U.S. license that permits oil production and export despite sanctions. It holds approximately 25% of operations in the country, with an output of around 250,000 barrels per day.
Previously, Chevron was allowed to export this full volume to the United States. However, last summer, the Trump administration imposed additional restrictions on the license as part of its pressure campaign against the Maduro regime. This lowered the permitted export volume to about 100,000 barrels per day.
With the reported ousting of the Maduro regime and U.S. assumption of control over Venezuela's oil assets, Chevron is now seeking permission to not only restore exports to earlier levels but also to provide Venezuelan crude to its business partners. The company aims to allow these partners to allocate cargoes in markets outside the United States, a practice that occurred in the past.
Chevron's long-standing presence in Venezuela provides a significant advantage in accessing the world's largest oil reserves. The company remains committed to its joint ventures with Venezuela's state oil company, PDVSA. It has stated readiness to increase output by '100% essentially effective immediately.'
The company manufactures and sells various refined products, including gasoline, diesel, marine and aviation fuels, premium base oil, finished lubricants, and fuel oil additives.