London Daily

Focus on the big picture.
Thursday, Nov 27, 2025

Chevron set to trade Venezuelan oil if U.S. relaxes sanctions

Chevron set to trade Venezuelan oil if U.S. relaxes sanctions

Chevron Corp. is preparing to take operating control of its joint ventures in Venezuela if Washington relaxes sanctions on Caracas to boost crude supplies after banning Russia's oil imports, according to three people familiar with the situation.

The U.S. oil major has begun assembling a trading team to market oil from Venezuela, two of the people said. If U.S. approvals are received, Chevron aims to expand its role in the four joint ventures it shares with state-run company PDVSA, they added.

Chevron has asked the U.S. government for a license broad enough to have a greater say at its joint ventures in Venezuela, a first step to recovering crude output and exports, and to control where oil is sent, the three people said. Since 2020, Chevron has delegated most decision making to state-run PDVSA.

U.S. officials have made clear, however, that any new authorization will depend on whether Venezuelan President Nicolas Maduro takes further political steps, two sources said, such as releasing more jailed Americans and setting a firm date for resuming negotiations with the Venezuelan opposition.

Chevron's proposed moves could revitalize Venezuela's oil output and exports after years of underinvestment and sanctions shrank it to about 755,000 barrels per day (bpd) last month from 2.3 million bpd in 2016. Chevron's joint ventures with PDVSA had produced about 200,000 bpd before U.S. sanctions and lack of financing cut their output.

LOGISTICS TEAM


A date has not been set for issuing the authorization. But Chevron has begun preparations for employees to get Venezuelan visas in Aruba, ready to head to Caracas if the U.S. Treasury eases restrictions, the people said.

Last week, U.S. President Joe Biden banned U.S. imports of Russian oil, adding to an array of sanctions after Russia invaded Ukraine, an action Moscow has called a "special military operation."

Chevron aims to begin moving Venezuelan oil to refineries as soon as next month. Last week's U.S. ban on Russian imports allows oil under existing contracts to arrive in the country through April 22.

"Since Venezuelan barrels were banned in the United States in 2019, and Colombia and Mexico reduced key exports to the United States, Russian barrels have been feeding the Gulf refiners", said one person involved in the talks.

Chevron had vastly reduced its presence in Venezuela after Washington tightened sanctions on Venezuela in 2020. For years, Chevron and other PDVSA venture partners have requested more operating oversight.

The United States is drafting a new license that would allow Chevron to assume a more active role in Venezuela, a person familiar with the matter said. Washington is considering similar oil-for-debt authorizations for Spain's Repsol (REP.MC) and Italy's Eni SpA . They collectively are owed billions of dollars by their Venezuela joint ventures.

Chevron declined to comment, but reiterated in a statement its operations in Venezuela comply with U.S. sanctions and remain "a constructive presence in Venezuela."

PDVSA and Venezuela's oil ministry did not reply to requests for comment.

A State Department spokesperson said the U.S. government "does not preview sanctions actions" but added: "We have made clear that we would review some sanctions policies if the Venezuelan parties made meaningful progress in the Venezuelan-led negotiations in Mexico toward a democratic solution."

The U.S. Treasury Department did not immediately respond to a request for comment.

POLITICAL TALKS


This month, Washington quietly restarted diplomatic engagement with Venezuela, a close ally of Russia. Last week, Maduro released two jailed Americans, and Washington has insisted others also be freed. Maduro has expressed a willingness to resume a dialogue with the opposition after he suspended talks in Mexico in October. U.S. officials want a firm commitment to discussing free elections.

On Sunday, U.S. national security adviser Jake Sullivan told NBC any sanctions relief for Venezuela must be tied to "concrete steps" by Maduro.

The Biden administration had not previously made Venezuela a foreign policy priority. That changed when Middle East and U.S. shale producers would not boost their crude supplies when the White House asked them to do so after the Ukraine invasion.

Congressional Republicans and even some of Biden's fellow Democrats such as U.S. Senator Bob Menendez have opposed any deal that would benefit the socialist president. Washington condemned Maduro's 2018 re-election as a sham.

The United States imported 670,000 barrels per day (bpd) of Russian oil and fuel last year. One of the few countries in a position to replace those imports is Venezuela. Before sanctions, its oil went mainly to U.S. Gulf Coast refiners.

TIMELY APPROVAL


Chevron-marketed barrels could help PBF Energy (PBF.N), Valero Energy (VLO.N), and Phillips 66 (PSX.N) fill their supply gap, the source said. All have operations geared to run heavy oils.

Chevron has held parallel talks with PDVSA to expand its joint ventures' governance. Any agreements likely would be temporary unless Venezuela enacts deep reforms of its oil legislation, which require PDVSA to be the majority stakeholder in any joint venture.

While PDVSA President Asdrubal Chavez supports an expanded operating role for Chevron, some Venezuelan top officials resist the change, three sources familiar with the matter said.

Venezuela holds about 300 billion barrels of oil reserves, the world's largest, but has not been able to hit its production targets due to underinvestment, poor maintenance, lack of supplies and U.S. sanctions.

Newsletter

Related Articles

0:00
0:00
Close
UK to Slash Key Pension Tax Perk, Targeting High Earners Under New Budget
UK Government Announces £150 Annual Cut to Household Energy Bills Through Levy Reforms
UK Court Hears Challenge to Ban on Palestine Action as Critics Decry Heavy-Handed Measures
Investors Rush Into UK Gilts and Sterling After Budget Eases Fiscal Concerns
UK to Raise Online Betting Taxes by £1.1 Billion Under New Budget — Firms Warn of Fallout
Lamine Yamal? The ‘Heir to Messi’ Lost to Barcelona — and the Kingdom Is in a Frenzy
Warner Music Group Drops Suit Against Suno, Launches Licensed AI-Music Deal
HP to Cut up to 6,000 Jobs Globally as It Ramps Up AI Integration
MediaWorld Sold iPad Air for €15 — Then Asked Customers to Return Them or Pay More
UK Prime Minister Sir Keir Starmer Promises ‘Full-Time’ Education for All Children as School Attendance Slips
UK Extends Sugar Tax to Sweetened Milkshakes and Lattes in 2028 Health Push
UK Government Backs £49 Billion Plan for Heathrow Third Runway and Expansion
UK Gambling Firms Report £1bn Surge in Annual Profits as Pressure Mounts for Higher Betting Taxes
UK Shares Advance Ahead of Budget as Financials and Consumer Staples Lead Gains
Domino’s UK CEO Andrew Rennie Steps Down Amid Strategic Reset
UK Economy Stalls as Reeves Faces First Budget Test
UK Economy’s Weak Start Adds Pressure on Prime Minister Starmer
UK Government Acknowledges Billionaire Exodus Amid Tax Rise Concerns
UK Budget 2025: Markets Brace as Chancellor Faces Fiscal Tightrope
UK Unveils Strategic Plan to Secure Critical Mineral Supply Chains
UK Taskforce Calls for Radical Reset of Nuclear Regulation to Cut Costs and Accelerate Build
UK Government Launches Consultation on Major Overhaul of Settlement Rules
Google Struggles to Meet AI Demand as Infrastructure, Energy and Supply-Chain Gaps Deepen
Car Parts Leader Warns Europe Faces Heavy Job Losses in ‘Darwinian’ Auto Shake-Out
Arsenal Move Six Points Clear After Eze’s Historic Hat-Trick in Derby Rout
Wealthy New Yorkers Weigh Second Homes as the ‘Mamdani Effect’ Ripples Through Luxury Markets
Families Accuse OpenAI of Enabling ‘AI-Driven Delusions’ After Multiple Suicides
UK Unveils Critical-Minerals Strategy to Break China Supply-Chain Grip
Taylor Swift’s “The Fate of Ophelia” Extends U.K. No. 1 Run to Five Weeks
UK VPN Sign-Ups Surge by Over 1,400 % as Age-Verification Law Takes Effect
Former MEP Nathan Gill Jailed for Over Ten Years After Taking Pro-Russia Bribes
Majority of UK Entrepreneurs Regard Government as ‘Anti-Business’, Survey Shows
UK’s Starmer and US President Trump Align as Geneva Talks Probe Ukraine Peace Plan
UK Prime Minister Signals Former Prince Andrew Should Testify to US Epstein Inquiry
Royal Navy Deploys HMS Severn to Shadow Russian Corvette and Tanker Off UK Coast
China’s Wedding Boom: Nightclubs, Mountains and a Demographic Reset
Fugees Founding Member Pras Michel Sentenced to 14 Years in High-Profile US Foreign Influence Case
WhatsApp’s Unexpected Rise Reshapes American Messaging Habits
United States: Judge Dressed Up as Elvis During Hearings – and Was Forced to Resign
Johnson Blasts ‘Incoherent’ Covid Inquiry Findings Amid Report’s Harsh Critique of His Government
Lord Rothermere Secures £500 Million Deal to Acquire Telegraph Titles
Maduro Tightens Security Measures as U.S. Strike Threat Intensifies
U.S. Envoys Deliver Ultimatum to Ukraine: Sign Peace Deal by Thursday or Risk Losing American Support
Zelenskyy Signals Progress Toward Ending the War: ‘One of the Hardest Moments in History’ (end of his business model?)
U.S. Issues Alert Declaring Venezuelan Airspace a Hazard Due to Escalating Security Conditions
The U.S. State Department Announces That Mass Migration Constitutes an Existential Threat to Western Civilization and Undermines the Stability of Key American Allies
Students Challenge AI-Driven Teaching at University of Staffordshire
Pikeville Medical Center Partners with UK’s Golisano Children’s Network to Expand Pediatric Care
Germany, France and UK Confirm Full Support for Ukraine in US-Backed Security Plan
UK Low-Traffic Neighbourhoods Face Rising Backlash as Pandemic Schemes Unravel
×