London Daily

Focus on the big picture.
Wednesday, Jul 29, 2026

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
Trump says Israel ‘would not survive’ without US
France Evacuates Atlantic Coast Resorts as Wildfire Risk Rises Again
Magnitude 7.1 Earthquake Strikes Kumamoto as Rescuers Search Collapsed Buildings
OpenAI Faces Demands for Full Disclosure After Models Breach Hugging Face
Nvidia Reportedly Takes Vast Texas Data-Centre Lease to Underwrite AI Expansion
Royal Collection Trust Income Falls as Palace Visits Retreat From Record Highs
FIFA’s Private-Investment Plan for World Cup Rights Draws European Revolt
Ministers Examine Social-Care Levy as Burnham Seeks Funding Settlement
UK Attractions Sector Forecast to Add £587 Million in Visitor Spending
England Coast Path Extends With New Suffolk Estuary Walking Route
Attorney General Wins Longer Jail Term for Fatal Dangerous Driving Case
Andrew and Tristan Tate Remain in U.S. Custody Pending UK Extradition
Royal Fleet Auxiliary Workers Secure Above-Inflation Pay Deal
Prime Minister Seeks Cross-Party Agreement on Social Care Reform
Court Upholds Competition Ruling Against Drugmakers Over Hydrocortisone Prices
UK Unveils Major Technical Education Reform for Secondary Schools
UK Judge Rebukes Home Office Over AI-Generated Errors in Asylum Case
UK and Ukraine Agree to Share Electronic Warfare Technology
Apple Briefly Crosses Five Trillion Dollar Valuation as Investors Retreat From AI Bets
Badenoch Offers Tory Votes to Keep Serious Offenders in Prison
Why Americans Queue for $15 Ice Cream and a $100 Caviar Pint
Another AI Genius Left the United States — and Silicon Valley Is Starting to Worry
Shein Reports $99mn Loss as Trade Barriers Test Low-Cost Model
CXMT Gains 466% in China’s Biggest IPO Since 2010
Amazon Seeks Approval for 5,105-Satellite Mobile Network
Burnham Puts School-to-Work Reform at Centre of Welfare Strategy
Johnson & Johnson Agrees to $5.5 Billion Talc Lawsuit Settlement
EU AI Act Shapes Global Corporate Standards, Study Finds
UK-Japan Relations Expected to Deepen Under Burnham Government
Burnham Signals Tough Decisions on Council Tax Reform
UK Inflation Slows to 2.6% in June
Bank of England Holds Interest Rates at 3.75%
Prime Minister Burnham Opens Talks With Business Leaders on Economic Growth
Government Launches 'Number Ten North' to Drive UK Devolution
Labour Regains Poll Lead After Burnham's First Weeks in Office
Prime Minister Burnham Rules Out Early UK General Election Before 2029
Burnham Rules Out Replacing Council Tax and Stamp Duty
Fresh Heatwave Threatens to Rekindle France’s Historic Wildfire Crisis
The Burnham government is seeking to establish its credibility through ambitious social care reform while maintaining fiscal discipline and public confidence in the National Health Service. Labour's early improvement in opinion polls provides political momentum, but sustained support will depend on delivering tangible policy outcomes. Britain continues to reinforce its role in European security through long-term support for Ukraine, while climate-related risks, including increasingly severe wildfires across England and Scotland, are becoming a more prominent national resilience challenge alongside economic uncertainty.
United Kingdom Economy Remains Exposed to Global Energy Risks
Prime Minister Dismisses Calls for an Early General Election
Scottish Wildfires Continue to Stretch Emergency Services
United Kingdom Faces Rising Wildfire Risk as Heatwave Continues
Lower Oil Prices Ease Inflation Concerns and Support Financial Markets
Financial Conduct Authority Launches Consumer Campaign on Car Finance Compensation
Government Prioritises Employment Over Benefit Cuts in Welfare Reform Plans
Prime Minister Rules Out Sweeping Property Tax Changes Before Autumn Budget
AstraZeneca Beats Expectations as Cancer Medicines Drive Strong Profit Growth
Labour Regains Narrow Polling Lead After Burnham's First Week in Office
United Kingdom Reaffirms Long-Term Commitment to Ukraine Under Burnham Government
×