The Trump administration has issued a narrow authorization for U.S. oil producer Chevron (CVX.N) to keep assets in Venezuela, including its stakes in oil joint ventures with state company PDVSA, three sources with knowledge of the decision said on Tuesday.
Chevron and several European firms had been in talks with officials in Washington in recent weeks to obtain authorizations to preserve their stakes and assets in the South American country amid President Donald Trump's restrictive policy toward the nation.
The guidelines for Chevron, whose terms are similar to those in a U.S. license it held between 2020 and 2022 for its Venezuelan operations, came as the administration allowed the energy company's wider license to operate in the country to expire on Tuesday. Former U.S. President Joe Biden had issued that license more than two years ago.
Under the new authorization, Chevron cannot operate oilfields in Venezuela, export its oil or expand activities, the sources said, adding that its intention is to avoid any possible payments to President Nicolas Maduro's administration.
Chevron said in a statement on Tuesday: "General License 41B has expired, and Chevron's continued presence in Venezuela remains in compliance with all applicable laws and regulations, including the sanctions framework provided for by the U.S. government.”
The U.S. Treasury Department and PDVSA did not immediately reply to requests for comment. It was not immediately clear if the guidelines for Chevron would be extended to other foreign partners of PDVSA.
Executives from Chevron Venezuela on Tuesday notified Venezuela's authorities and its contractors about the new instructions, two of the sources said. Oil service and procurement contracts Chevron had signed were terminated.
A wind-down period set in the previous license to complete transactions, including exports of Venezuelan oil to the U.S., expired, despite a statement by U.S. special envoy Richard Grenell last week that a 60-day extension would be granted, following a meeting with a Venezuelan top official.
Trump has accused Maduro of failing to make progress on migrant returns and electoral reforms toward the restoration of democracy in the South American nation, and said in February he would revoke the license.
Maduro and his government have always rejected sanctions by the U.S. and others, saying they amount to an economic war, while cheering what they say is the country's resilience.
Venezuela, an OPEC member, has the world's largest reserves of crude. But its oil output is a fraction of what it was a decade ago due to lack of investment, mismanagement at PDVSA and U.S. sanctions since 2019.
In recent years, the licenses to Chevron and other foreign companies supported a slight recovery in Venezuelan oil output to about 1 million barrels per day.
