Chevron Gets Another Reprieve to Continue Working in Venezuela
(Bloomberg) -- Chevron Corp. and four oilfield service providers won U.S. government approval to continue working in Venezuela for 90 days, allowing the companies’ access to the world’s largest reserves of crude despite sanctions on the crisis-stricken country.
The U.S. Treasury Department decision is the fourth waiver granted since sanctions were announced in November 2018 in what is becoming a fraught quarterly ritual for the companies. Along with Chevron, the waiver also exempts Baker Hughes Co., Halliburton Co., Schlumberger Ltd. and Weatherford International Ltd. from sanctions.
The waiver was extended through 12:01 a.m. Eastern time on April 22. The previous waiver was due to expire on Jan. 22.
Venezuela’s daily oil production slumped to a 75-year low of 792,000 barrels last year as sanctions crippled the economy and cut off access to U.S. refiners. As a result, the nation’s crude exports that bankroll the regime tumbled to the lowest since 1985.
While Venezuela accounts for only about 1% of Chevron’s global crude production, it remains strategically important given the nation’s vast untapped reserves. Proponents of Chevron’s position argued that withdrawing would cede market share and influence to Russian and Chinese companies.
Chevron is the last remaining major U.S. explorer in the country. Rivals Exxon Mobil Corp. and ConocoPhillips exited a decade ago after then-President Hugo Chavez seized control of their assets.
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US allows Chevron to keep drilling in Venezuela for 3 months
WASHINGTON — The Trump administration has granted Chevron a special license to keep drilling oil in Venezuela despite a ban on American companies doing business with President Nicolás Maduro's socialist government.
The Treasury Department late Friday renewed until April 22 the license for Chevron and four other U.S. service suppliers that are among the last American companies operating in the oil-rich South American nation. It's the fourth time the U.S. has exempted the companies from the Venezuela ban.
Chevron, a San Ramon, California-based company, has operated in Venezuela for almost a century. Its four joint ventures with Venezuela's state-run oil monopoly PDVSA produce about 200,000 barrels a day. That’s about a quarter of Venezuela’s total production, according to the Organization of the Petroleum Exporting Countries.
Critics among Venezuela's opposition insist that Chevron's continued presence in the country undercuts the Trump administration's goal of ousting Maduro by providing him a valuable lifeline of badly-needed export dollars.
The Associated Press
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