Chevron Navigates U.S. Sanctions While Sustaining Venezuelan Oil Operations
Bloomberg News
HOUSTON
EnergiesNet.com 03 13 2025
Venezuelan oil contractors are continuing their work with Chevron Corp. and have not been warned of an impending shutdown despite a US government deadline to stop producing oil there by early April.
Local service companies working for three of Chevron’s joint ventures with state-owned Petroleos de Venezuela SA have not slowed down work, according to five people with knowledge of the matter. Chevron hires local companies to maintain oil wells, supply power generators, operate small drills and specialized equipment as well as manage housing contracts for employees.
US President Donald Trump’s administration set an April 3 deadline for the oil major to wrap up operations in Venezuela, cutting short the six-month wind-down period. The fact that Chevron’s work continues apace more than a week after Washington issued its order underscores how challenging it will be for the company to comply with the accelerated timeline, designed to pressure Nicolás Maduro to make a deal over democratic reforms and accept more migrants from the US.
Chevron is “aware of the President’s directive and will abide by any direction given by the U.S. Treasury Department to implement that directive,” spokesperson Bill Turenne said by email. The company “conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by U.S. government.”
Venezuela’s information ministry and PDVSA press officials didn’t immediately respond to requests for comment.
Chevron faced a similar situation in 2020, when the US first sanctioned Venezuela’s oil industry, leading Chevron to reduce operations to a minimum and giving contractors clear directions to halt work with months in advance.
This time, there has been no guidance to wrap up contracts, rush invoices or pull machinery and equipment out, the people said. Chevron also continues to load crude oil on Venezuela’s shores, as well as importing diluent needed for exporting purposes, one of the people said.
At first glance, the business as usual on the ground appears at odds with the urgency on behalf of the Trump administration.
“My interpretation is that Chevron is very confident it can obtain an extension and that they are simultaneously trying to negotiate a new license with the Trump administration and the Maduro government,” said Francisco Monaldi, director of the Latin American energy policy at Rice University’s Baker Institute for Public Policy in Houston.
On Wednesday, Chevron’s president for downstream Andy Walz said the company is looking to replace Venezuelan oil at its refineries with supplies from Mexico, Brazil and the Middle East.
“Venezuela was sanctioned for several years under the previous administration, and we went and sourced crude from other places,” Walz on the sidelines of the CERAWeek by S&P Global conference in Houston. “We’re going to follow the rules.”
Venezuela’s economy depends heavily on oil. Chevron and other smaller companies that have been granted permission from Washington to operate there have been crucial engines of growth as Venezuela’s own state oil company is in tatters after years of underinvestment.
Joint operations between Chevron and PDVSA have contributed a quarter of the Maduro regime’s total revenue in 2023 and 2024, according to an estimate from the Caracas-based consultancy Ecoanalítica. Without Chevron, Venezuela’s economy could shrink by as much as 7.5% this year, according to the Finance Observatory, an opposition-led research group.
bloomberg.com 03 12 2025
