US-Licensed Buyers Wrap Up Venezuelan Oil Deals as Sanctions Deadline Passes

Companies operating under US authorizations, including Chevron, Maurel & Prom, and Repsol, have completed their final Venezuelan oil shipments ahead of a May 27 deadline, as the Trump administration’s sanctions crackdown forces a halt to legal crude transactions—pushing PDVSA toward opaque Asian intermediaries to keep exports alive.

Key Developments

🛢️ Last Legal Shipments:

  • Swap deals completed: M&P and Vitol delivered naphtha to Venezuela in exchange for heavy crude shipments to the US.
  • Chevron’s exit: Broad license expired; retains assets/staff under restricted terms.
    📉 Export Shift:
  • US/EU buyers exit, but Asian traders (often obscure) step in to take Venezuelan crude.
  • PDVSA’s April cancellations to Chevron accelerated the wind-down.

Why It Matters

💸 Venezuela’s Crunch:

  • Losing US-authorized buyers threatens 15–30% drop in output (currently ~1M bpd).
  • Reliance on shadowy middlemen means lower prices, higher risks.
    🇺🇸 US Policy Hardens:
  • Trump revoked licenses in March, demanding electoral reforms from Maduro.
  • No sanctions relief expected before the 2024 US election.

What’s Next?

  • Output Decline: Analysts predict production slump by late 2025.
  • Asian Lifeline: China, India, and Malaysia may absorb more discounted barrels.
  • Debt Risks: PDVSA’s joint-venture partners (like Chevron) face unpaid bills.
US-Licensed Buyers Wrap Up Venezuelan Oil Deals as Sanctions Deadline Passes
Scroll to top