London Daily

Focus on the big picture.
Tuesday, Aug 04, 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
Europe’s Drying Rivers Trigger Power Cuts, Factory Shutdowns and Wildfire Emergencies
Nigel Farage Expresses Openness to Potential Alliance with Restore Britain
AstraZeneca Merger Talks Reflect Intensifying Pharmaceutical Consolidation
University Merger May Set Template for Higher Education Reform
Apple's Legal Challenge Highlights Growing Tension Over Encryption and Surveillance
Prime Minister Andy Burnham's Agenda Signals Shift Toward Greater Regional Devolution
Mental Health Trust Faces Criticism Over Planned £25 Million Budget Cuts
Scientists and Cultural Leaders Call for Funding to Save Jodrell Bank Observatory
UK Manufacturing Output Reaches Highest Level in Nearly Two Years
University of Greenwich and University of Kent Complete Landmark Merger
Nigel Farage Unveils Naval Border Proposal Amid Questions Over £5 Million Donation
Prime Minister Andy Burnham Pledges Tougher Action on Small Boat Crossings
Apple Challenges UK Government Over Encrypted Data Access Demands
AstraZeneca Shares Fall After Reports of $400 Billion Bristol Myers Squibb Merger Talks
Triple Lock Lifts UK State Pension but Leaves a Wider Retirement Gap
Danube Drought Forces Hungary’s Paks Nuclear Plant Into Full Shutdown
Ceuta Death Toll Rises as Spain and Europe Clash Over Border Response
Cuba’s Grid Fails Again as Fuel Crisis Deepens
Nazca Lines Flight Crash Kills Thirteen as Peru Suspends Aerodiana
Modern Slavery Decisions Broaden the Al Fayed Inquiry’s Frame
FIFA’s Retreat Leaves a Larger Question Over Who Guards the Game
Two Firefighting Crew Members Die in Helicopter Collision West of Athens
Public Sector Automation Through Artificial Intelligence
Regional Investment Beyond London
Protection of Strategic Technology Assets
UK Competition Regulator Blocks Major Foreign Takeover of British Quantum Computing Firm
UK Government Commits Two Billion Pounds to Modernise Northern Rail Network
UK Parliament Approves Planning Reforms to Accelerate Housing Construction on Green Belt Land
Scotland Approves Major Floating Offshore Wind Expansion in the North Sea
United Kingdom and European Union Sign Defence and Critical Minerals Cooperation Agreement
NHS Invests Five Hundred Million Pounds in Artificial Intelligence Diagnostics to Reduce Waiting Lists
Bank of England Cuts Interest Rate to Three Point Seven Five Percent as Inflation Pressures Ease
Ceuta Border Surge Recasts Europe’s Migration Debate
Burnham Promises a Harder Channel Response as Crossings Test His New Government
Glasgow 2026 Commonwealth Games End With Organisers Defending Smaller Format as Sustainable Model
Reform UK Faces Labour Criticism Over Nigel Farage Leadership Return Discussions
Environment Agency Restricts River Thames Navigation as Low Water Levels Raise Concerns
UK Government Launches Free Bus Travel Scheme for Children During Summer Holidays
Chancellor Rachel Reeves Confirms October Budget Date and Plans Wider Regional Funding Shift
Prime Minister Andy Burnham Promises Tougher Action on Small Boat Crossings Amid European Migration Pressure
UK Economic Growth Forecast Raised Slightly as Inflation Expected to Remain Above Target Until 2029
National Farmers Union Warns of Food Shortage Risks as Drought and Heatwaves Damage UK Crops
Finland Deploys Commercial-Scale Thermal Batteries Using Crushed Rock to Store Renewable Grid Energy
Valued at $109 Million: F-35B Fighter Jet Crashes in Southern California
Sainsbury Agrees to Sell Argos in £120 Million Deal to Private Consortium
High Court Clears Way for Construction of Chinese Embassy at Royal Mint Court
UK Fuel Prices Climb to Multi-Month Highs as Strait of Hormuz Tensions Disrupt Oil Supplies
Severe Summer Drought and Record Heat Put UK Harvests at Risk
Prime Minister Andy Burnham Faces Labour Backbench Opposition Over Potential Support for New North Sea Oil and Gas Drilling
Bank of England Warns Inflation Will Stay Above 3% as Middle East Energy Shock Prolongs Cost-of-Living Pressures
×