US provides Chevron limited authorization to pump oil in Venezuela
Firstly, the US has granted Chevron limited authorization to resume pumping oil from Venezuela. Secondly, the Venezuelan government and the opposition group reached an agreement. They agreed an humanitarian relief.
Thirdly, they will continue to negotiate for a solution to the country’s chronic economic and political crisis. Moreover, there is a focus on the 2024 elections.
Important steps in the right direction.
A senior Biden administration oficial.
There is still much to be done as both parties work toward a more permanent solution to the ongoing crisis. They do not expect this to have a tangible impact on international oil prices and that the move is intended as an inducement for the negotiations; not a reaction to high global oil prices.
The Treasury Department’s Office of Foreign Assets Control issued Venezuela General License 41. It authorizes Chevron to “resume limited natural resource extraction operations in Venezuela.
This is a 6-month license. Additionally, the US can revoke it at any time. Also, any profits earned will go to repaying debt to Chevron and not to the Maduro regime.
Moreover, the US government will continue to require significant reporting by Chevron on its financial operations.
GL 41 does not authorize other activity with PdVSA. Although, other Venezuela-related sanctions and restrictions imposed by the United States remain in place;
Finally, if the Venezuelan regime continues to take concrete steps toward reaching a negotiated solution, then future targeted sanctions relief is posible.
Chevron Corporation is an American multinational energy corporation. The second-largest direct descendant of Standard Oil, and originally known as the Standard Oil Company of California. It is headquartered in San Ramon, California, and is active in more than 180 countries.
Finally, Chevron is engaged in every aspect of the oil and natural gas industries, including hydrocarbon exploration and production; refining, marketing and transport; chemicals manufacturing and sales; and power generation.