The Trump administration has granted Chevron a restrictive license to maintain its assets in Venezuela, including stakes in PDVSA joint ventures, but prohibited the company from operating oilfields, exporting crude, or expanding activities—a move designed to tighten financial pressure on President Nicolás Maduro’s government.
Key Restrictions
🚫 No Production or Exports: Chevron cannot pump or sell Venezuelan oil.
🚫 No New Deals: Contracts with PDVSA and service providers terminated.
💰 No Payments to Maduro: Aims to prevent regime revenue.
Why the Partial Approval?
🔹 Strategic Compromise: Lets Chevron retain assets (avoiding confiscation) while aligning with Trump’s sanctions.
🔹 Political Leverage: Trump demands electoral reforms and migrant controls from Maduro.
📉 Venezuela’s Oil Collapse: Output already below 1M bpd due to sanctions and mismanagement.
What’s Next?
- Chevron’s Standstill: Holds stakes but cannot invest—risking further output declines.
- Other Companies: No clarity yet on whether European partners (e.g., Eni, Repsol) get similar terms.
- Maduro’s Response: Likely to decry sanctions but lacks leverage to retaliate.