Chevron Says Complies With Sanctions In Venezuela, Gives No Confirmation Of Policy Changes

WASHINGTON (UrduPoint News / Sputnik - 24th November, 2022) Chevron continues to comply with US sanctions that limit its operations in Venezuela to solely essential maintenance activity, a company spokesperson told Sputnik in light of reports that the United States May permit the company to expand its operations.

The Biden administration could grant Chevron authority to expand operations in Venezuela as soon as Saturday after the Venezuelan government led by President Nicolas Maduro and its opposition resume political talks in Mexico City, media reported.

"We continue to conduct our businesses in compliance with the current sanctions framework provided by the US Office of Foreign Assets Control (OFAC) under General License 8," the spokesperson said on Wednesday when asked about reports claiming the United States May allow Chevron to expand operations in Venezuela.

Chevron has a constructive presence in Venezuela with dedicated investments and a large workforce dependent on its presence, the spokesperson said, adding that the company also remains committed to the integrity of its joint venture assets.

However, the potential change would return US policy on Venezuela to the license framework that existed prior to 2020, which would basically allow US oil companies to operate in Venezuela's oil fields and to commercialize Venezuelan crude, but not expand activity in any way.

A source familiar with the matter said that for oil production in Venezuela to really move up, Western partners would need to be allowed to invest, which will take time.

The Biden administration has until December 1 to decide whether it will renew the license that allows Chevron and four other US oil companies, including Halliburton, to continue essential maintenance activity on their assets in Venezuela, but it does not permit oil production. The US Treasury has renewed this license 10 times before.

The Biden administration is looking at Venezuela as an additional source for crude oil, but but has no intention of a blanket lifting of sanctions, sources told Sputnik earlier this month.

The Biden administration is looking for options to help lower gasoline prices for US consumers after OPEC decided to slash production due to a slowing economy and the Strategic Petroleum Reserve supply drops to record lows after President Biden released some 180 million barrels since March.