Background on Chevron and its Venezuelan Operations
Chevron, the sole US oil company operating in Venezuela, has been granted a special license to continue its activities under certain restrictions. This license is set to expire on May 27, according to the US State Department, contradicting special envoy Richard Grenell’s claims.
Timeline of Events Leading to the Expiration
- February 2020: The US announces the termination of Chevron’s license in Venezuela.
- March 2020: The US extends the deadline for Chevron to wind down operations in Venezuela until May 27.
- May 2020: President Donald Trump imposes a 25% tariff on countries doing business with Venezuela’s Nicolás Maduro government, regardless of direct or third-party purchases of Venezuelan oil or gas.
US-Venezuela Relations and Sanctions
The US accuses the Chavista regime of controlling the Tren de Aragua criminal band, designated as a global “terrorist” organization by Washington. Despite this, the US has sent Grenell to negotiate the release of detained American citizens in Venezuela.
- Grenell’s Statement: The US President authorized the extension if progress could be made and trust generated, which has now been achieved.
- Marco Rubio’s Message: The US license for operating in Venezuela, initially granted by former President Joe Biden, will expire on May 27 as planned.
Current Restrictions on Chevron’s Operations
The latest license imposes several restrictions on Chevron’s operations in Venezuela:
- Chevron cannot pay taxes or royalties to the Venezuelan government.
- Chevron cannot distribute dividends to the state-owned oil company, Petróleos de Venezuela PDVSA.
- Chevron is prohibited from conducting business with sanctioned individuals by the US.
US Support for Venezuelan Opposition
The US supports opposition leader Edmundo González Urrutia, who claims victory in the July 2024 presidential elections.
The US and Venezuela have not maintained diplomatic relations since Trump’s first term.
