US Lets Chevron Start Pumping Oil in Venezuela Again

But US says it remains leery of President Nicolas Maduro
By Newser Editors and Wire Services
Posted Nov 27, 2022 9:05 AM CST
US Lets Chevron Start Pumping Oil in Venezuela Again
A Chevron sign is displayed outside one of the company's gas stations in Bradenton, Fla., 22, 2022.   (AP Photo/Gene J. Puskar, File)

The Biden administration on Saturday eased some oil sanctions on Venezuela in an effort to support newly restarted negotiations between President Nicolás Maduro’s government and its opposition. The Treasury Department is allowing Chevron to resume “limited” energy production in Venezuela after years of sanctions that have dramatically curtailed oil and gas profits that have flowed to Maduro's government, per the AP. Earlier this year, the Treasury Department again allowed the California-based Chevron and other US companies to perform basic upkeep of wells it operates jointly with state-run oil giant PDVSA.

Under the new policy, profits from the sale of energy would be directed to paying down debt owed to Chevron, rather than providing profits to PDVSA. Talks between the Maduro government and the “Unitary Platform” resumed in Mexico City on Saturday after more than a yearlong pause. It remained to be seen whether they would take a different course from previous rounds of negotiations that have not brought relief to the political stalemate in the country. A senior US administration official said that easing the sanctions was not connected to the administration's efforts to boost global energy production in the wake of Russia's invasion of Ukraine and that the decision was not expected to impact global energy prices.

The official said the US would closely monitor Maduro's commitment to the talks and reserved the right to reimpose stricter sanctions or to continue to ease them depending on how the negotiations proceed. “If Maduro again tries to use these negotiations to buy time to further consolidate his criminal dictatorship, the United States and our international partners must snap back the full force of our sanctions that brought his regime to the negotiating table in the first place,” said Democratic Sen. Bob Menendez of New Jersey. Chevron said the license granted by the US means the company “can now commercialize the oil that is currently being produced” through the joint venture.

(Read more Chevron stories.)

We use cookies. By Clicking "OK" or any content on this site, you agree to allow cookies to be placed. Read more in our privacy policy.
Get the news faster.
Tap to install our app.
Install the Newser News app
in two easy steps:
1. Tap in your navigation bar.
2. Tap to Add to Home Screen.