The US government is preparing to grant limited authorisations to Chevron, the major US oil company and partner of Venezuela’s state-run oil firm PDVSA, to resume operations in Venezuela.
This move represents a potential shift away from the strict sanctions policy imposed on Venezuela’s energy sector since 2019.
If approved, the authorisations would permit Chevron, as well as some of PDVSA’s European partners such as Italy’s Eni and Spain’s Repsol, to conduct limited business operations including paying oilfield contractors and importing essential goods under controlled conditions.
The Trump administration is considering allowing some imports to be exchanged for Venezuelan oil, a practice authorised under previous licences, while imposing strict safeguards to ensure that oil revenues do not benefit President Nicolás Maduro’s government.
According to sources, the US State Department is requiring that no funds from these operations flow to Maduro, addressing concerns that PDVSA’s tax and royalty demands before exports have previously resulted in financial gains for the Venezuelan government despite sanctions.
Secretary of State Marco Rubio is reportedly negotiating the scope of these potential authorisations.
President Maduro welcomed the prospect of Chevron’s return, stating that the company has been “notified to resume its operations on a legal basis” and expressing hope for another century of Chevron’s presence in Venezuela, where it has operated for 102 years.
He also noted ongoing working groups to facilitate Chevron’s reintegration, framing this development as part of broader diplomatic engagement following a recent prisoner exchange between the US and Venezuela.
This policy adjustment contrasts with earlier moves this year, when Trump’s administration revoked several Venezuelan energy licences including Chevron’s, setting a deadline to wind down transactions by late May.
Since then, PDVSA remained in operational control of joint ventures, though foreign companies retained their stakes.
The easing of restrictions reflects a calibrated diplomatic approach described by analysts as “sanctions with offramps,” designed to maintain pressure while allowing limited exceptions to support energy production and global market stability.
Furthermore, PDVSA has sought to sustain oil production through new agreements with foreign service providers, including Chinese firms, in light of Chevron’s earlier exit due to sanctions.
Chevron’s eventual return is expected to help address Venezuela’s heavy oil production challenges and could increase output by approximately 200,000 barrels per day over time, contributing to global energy supplies amid ongoing market tightening.
Specific terms of the renewed licenses remain confidential, but they likely include permission to restart production, conduct repairs, import necessary materials, and operate under strict conditions that prevent revenue from benefiting sanctioned Venezuelan officials.
The move is seen as a strategic effort to balance geopolitical pressures with practical energy considerations.
In summary, the planned limited resumption of Chevron’s operations in Venezuela marks a notable shift in US policy from strict sanctions toward a more nuanced engagement with Venezuela’s oil sector, emphasising operational continuity and prevention of revenue diversion to Maduro’s government amidst a complex diplomatic environment.
