Carlos Camacho, Argus

CARACAS
Energiesnet.com 03 25 2022

If the US reaches an agreement with Venezuela to lift sanctions and resume crude exports, US oil giant Chevron — the only US oil company still operating in the Latin American country — will likely play a key role.

Chevron would be best positioned as the intermediary to take oil from oilfields in Venezuela and move it to US refineries — most likely those controlled by Chevron or owned by PdV’s US refining subsidiary Citgo, according to multiple industry and government sources. And it is the company most likely to drive increased Venezuelan production, something the country has wanted to do for years.

Chevron has four joint ventures in Venezuela in which state-owned PdV is the majority shareholder. Only PetroPiar and PetroBoscan in western Venezuela were active when the US company was forced to halt operations in 2020. A waiver allows it to keep a minimal presence in Venezuela after the US implemented sanctions.

Chevron declined to comment on its possible role in Venezuelan exports should the US sanctions regime change.

“We continue to conduct our business in compliance with the current sanctions framework provided by the US Office of Foreign Assets Control (OFAC),” the company said. “We are a constructive presence in Venezuela, where we have investments and a large workforce who are dependent on our presence.”

Chevron’s license with OFAC for its continued work in Venezuela is up for renewal in June.

A resumption of exports from Venezuela to the US still seems to be far from certain. A number of US lawmakers raised concerns about the White House exploring potential sanctions relief. Talks between the Venezuelan government and opposition — a key component to any lifting of US sanctions — also appear to be stalled.

argusmedia.com 03 24 2022