Chevron Corporation pushes back against the US' plans to let Venezuela sanctions waiver expire. Oil production could be driven up by this move, Chevron argues. Besides, it also will bolster both Russia's standing in the global market and the Maduro regime.
Under a US Treasury Department general license which expires October 25, Chevron and four US oil services companies are operating in Venezuela outside of US sanctions. If the waiver expires and Chevron is forced to leave the country, it stands to lose an estimated $2.5 billion.
If the waiver is allowed to expire, Venezuela's oil output could plunge below 300,000 b/d. This option becomes attractive to the US to increase pressure on the Maduro regime.
However, if Rosneft, or another Russian or Chinese company, takes control of Chevron's Venezuelan assets, Chevron believes that any decline in production will be short-lived. Rosneft could return output to current levels within 45 days if it were to take over Chevron's operations.
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