The United States gives Chevron limited authorization to pump oil in Venezuela after reaching a humanitarian deal

Washington
CNN
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The United States gave Chevron limited authorization to resume pumping oil from Venezuela after announcing Saturday that the Venezuelan government and the opposition group had reached an agreement on humanitarian relief and would continue negotiating to resolve the country’s chronic economic and political crisis, including with a focus on 2024 elections.

a senior Biden administration official Saturday’s remarks were described as “important steps in the right direction,” but he noted that more remained to be done as the parties work toward a more permanent solution to the ongoing crisis. The official also highlighted the limited nature of the license, saying that they do not expect this to have a significant impact on global oil prices and that the move is intended to encourage negotiations and not as a reaction to higher global oil prices.

The Treasury Department’s Office of Foreign Assets Control on Saturday issued Venezuelan Public License 41, which allows Chevron to “resume limited natural resource extraction operations in Venezuela,” according to a Treasury press release. This is a 6-month license, and the US can revoke it at any time. In addition, any profits made will go to paying off debts to Chevron and not to the Maduro regime, according to the senior official, and states that the US government will continue to require important reports from Chevron on its financial operations.

“GL 41 authorizes activity related to Chevron joint ventures in Venezuela only, and does not authorize any other activity with PdVSA. Venezuela-related sanctions and other restrictions imposed by the United States remain in place; The statement said that the United States will vigorously implement these sanctions and will continue to hold accountable any actor involved in corruption, violating US laws, or violating human rights in Venezuela. PdVSA is Venezuela’s state-owned oil and gas company.

Chevron CEO Mike Wirth told Bloomberg TV earlier this year that if there is a thaw it will take months and years to replenish the country’s oil fields and that “there will be no immediate impact” on oil production.

If the Venezuelan regime continues to take concrete steps toward a negotiated solution, targeted sanctions relief is possible in the future, according to the official.