US Allows Chevron to Restart Pumping Oil in Venezuela

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(Bloomberg) — The Trump administration has restored Chevron Corp.’s ability to pump oil in Venezuela, according to a person familiar with the matter.

Full details of the decision were not immediately clear. The move came around the same time Washington and Caracas brokered an agreement that saw the release of 10 Americans detained in Venezuela, while 250 Venezuelans who were imprisoned in El Salvador were returned to their home country.

Key to the arrangement was an assurance that no royalties or taxes would benefit the government of Venezuela’s socialist leader, Nicolas Maduro, according to the person, who requested anonymity to discuss the matter.

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“Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the U.S. government, including in Venezuela,” Chevron spokesman Bill Turenne said in a statement.

The US revoked Chevron’s license to pump oil in Venezuela earlier this year, part of President Donald Trump’s effort to pressure the Maduro government. The decision to block the company’s operations was hailed by national security hawks in Trump’s administration, including Secretary of State Marco Rubio.

The license would allow the Houston-based oil giant to resume production at its sites in Venezuela after being ordered to wind-down operations in May. It would also help pump much-needed US dollars into Venezuela’s economy, which is showing signs of decline.

Chevron’s license to operate in Venezuela has become a chip in negotiations between Maduro and the US, and those within the Trump administration have advocated for different approaches. Rubio has advocated for a tough stance, while special envoy Ric Grenell and others have pushed for a more transactional relationship.

Supporters of allowing Chevron to resume production had argued that without the US operator inside the country, the crude was benefitting China. The price of oil — and US dominance in producing it — is also a key consideration for Trump.

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Chevron served as a vital lifeline for Venezuela, where it was the only US oil major left in the country. In 2022, the Biden administration granted the company a license that authorized it to produce oil in the South American nation and resume crude exports, but limited it from expanding.

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The US imported about 250,000 barrels a day of Venezuelan crude, mostly for refineries on the Gulf Coast. Valero Energy Corp., the third-biggest US fuel maker, was the top user of Venezuelan oil at the end of 2024, followed by Chevron, which uses the crude in its own refineries as well as sells it to others.

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