The US Treasury Department on November 17 issued a new license which extends the deadline for Chevron to wind down its joint venture operations in Venezuela. Chevron has a special operating license that provides it with an exemption from US sanctions on Venezuela. The latest waiver allows it to operate in Venezuela until December 1. The new license extends the deadline to June 3, 2021. The new license was also granted to Baker Hughes, Halliburton, Weatherford International, and Schlumberger.
Under the latest waiver, these companies are authorized to conduct necessary transactions with PDVSA, including repairing wells, hiring new staff, contracting services, and paying dividends to Venezuela’s state-owned oil company PDVSA. However, they are prohibited from drilling new wells, as well as selling, shipping, or trading Venezuelan crude.
The Trump administration launched sanctions against Venezuela’s oil industry in 2019, with an aim to oust socialist President Nicolas Maduro. However, Maduro remains in power until now as allies such as China, Russia, and Cuba continue to support him. President-elect Joe Biden is expected to keep the sanctions to replace Maduro. However, some analysts said Biden would use a different approach toward Venezuela by considering more input from allies and trading partners.
