Chevron negotiating with US for expanded Venezuela license: sources

• Chevron is currently the only U.S. oil major operating in Venezuela under a special government authorization that exempts it from sanctions
• Washington and Caracas are negotiating a deal to supply up to 50 million barrels of Venezuelan oil to the United States
• The U.S. government is pushing to involve other American oil companies in Venezuelan oil exports beyond Chevron

Summary:

Chevron is negotiating with the U.S. government to expand its operating license in Venezuela, aiming to increase crude oil exports to its refineries and sell to additional buyers, according to sources familiar with the discussions. The talks coincide with broader negotiations between Washington and Caracas to supply up to 50 million barrels of Venezuelan oil to the United States.

Key Details:

• Chevron remains the only major U.S. oil producer operating in Venezuela under a special government authorization that exempts it from sanctions
• President Donald Trump is encouraging American oil companies to invest in Venezuela's energy sector
• The U.S. government is also seeking to involve other American companies in Venezuelan oil exports

Market Context:

The negotiations signal a potential thaw in U.S.-Venezuela energy relations and could increase global crude oil supply. Venezuela, once a major oil exporter, has seen production decline significantly under sanctions and operational challenges. Expanded Chevron operations could provide the company with access to additional crude supplies for its refining operations while supporting the Trump administration's strategy to boost domestic energy interests in the region.

Implications:

If approved, the expanded license would allow Chevron greater operational flexibility in Venezuela and potentially increase Venezuelan crude flows to U.S. markets. This development may impact global oil prices and reshape U.S. energy policy toward Venezuela. The involvement of additional U.S. companies could further normalize energy trade relations between the two countries.