Chevron in Venezuela

The US Treasury Department on Friday announced that it had extended the general licences of US oil and gas company Chevron and four other corporations to do business with Venezuelan state oil company PDVSA or its controlled entities until 1 December 2022.

It is worth noting that in addition to Chevron, oil service corporations Halliburton, Schlumberger, Baker Hughes and Weatherford have received the relevant permits.

The document circulated by the Ministry of Finance notes that the additional time is given to complete major operations and execute contracts and agreements that ensure the safety of the companies' personnel and assets. Last November, the Ministry of Finance extended the licence until 1 June.

Also, it is noted that these general licenses do not allow the drilling, production, processing, purchase, transportation or delivery of any oil or petroleum products of Venezuelan origin, or the hiring of new employees.

The sanctions imposed by the Washington administration on the oil sector in the Bolivarian Republic prohibit American companies from doing business with any authority or entity controlled by the government of President Nicolas Maduro Moros.

In 2019, the US authorities issued a licence under which they allowed the five listed companies to continue operating in Venezuela until the end of July 2019. This licence has subsequently been renewed several times.

The situation in Venezuela deteriorated sharply after opposition leader Juan Guaido, whose appointment as speaker of parliament had been annulled by the Supreme Court two days earlier, declared himself acting president on 23 January 2019.

He was recognised as interim head of state by the US, joined by the Lima Group countries (excluding Mexico), the Organisation of American States and most members of the European Union. Maduro called it a coup attempt and said he had severed diplomatic relations with the US.