Chevron Corporation and Companies from the European Union Are Requesting Approval from the United States Administration for Projects in the Bolivarian Republic of Venezuela
Chevron Corporation of the United States and European energy companies are currently engaged in negotiations with the administration of President Donald Trump to retain their stakes in joint ventures with PDVSA, the state-owned oil and gas company of the Bolivarian Republic of Venezuela, according to a report by Reuters. The chief executives of Spain’s Repsol and Chevron have confirmed ongoing discussions with United States authorities regarding licenses, although specific details have not been disclosed.
Washington has revoked the general licenses that previously allowed foreign companies to continue operating with PDVSA despite U.S. sanctions, granting firms until May 27 to wind down transactions. However, the fate of existing assets and personnel in Venezuela remains unclear.
In response to the new restrictions, PDVSA canceled some oil shipments to Chevron, citing payment difficulties, and shifted to prepayment or barter-based trading models. The United States also annulled licenses related to the storage of equipment in Venezuela. As a result, foreign firms are now requesting a return to the 2020–2022 framework, under which they were permitted to retain equity stakes and maintain minimal operational presence in Venezuela without expanding activities. According to the companies, such measures would help prevent a full exit, though they could also increase PDVSA’s debts, since the company now plans to manage exports independently.
Venezuela’s crude oil production has plummeted over the past decade due to sanctions, mismanagement, and a lack of foreign investment, even though the country possesses the largest proven oil reserves in the world. PDVSA recently suspended operations at the Petropiar joint venture refinery, redirecting crude oil to domestic refineries. At the same time, Chevron has rerouted tankers that were previously transporting exclusively Venezuelan crude to alternative routes. Chevron is currently scaling back its involvement in joint projects that account for roughly one-quarter of Venezuela’s total oil output (approximately 1 million barrels per day). The company maintains that its continued presence is critical to the energy security of the United States.
President Nicolás Maduro has characterized the sanctions as an act of “economic warfare”. Experts warn that, unless licenses are reinstated, Venezuela’s oil production could fall by 15 to 30 percent by 2026, dealing a major blow to PDVSA and foreign partners alike—including Chevron.
