The Trump administration said on Tuesday it was ending a license that the U.S. has granted to U.S. oil producer Chevron (CVX.N) since 2022 to operate in Venezuela and export its oil, after Washington accused President Nicolas Maduro of not making progress on electoral reforms and migrant returns.
Chevron will have through April 3 to wind down exports from Venezuela, according to an update of the license, published by the U.S. Treasury Department.
A Chevron spokesperson said the company was aware of Trump's directive and would abide by any direction given by Treasury to implement it.
The Venezuelan communications ministry did not immediately respond to a request for comment on the move.
When U.S. President Donald Trump announced last week the reversal of the license, which has allowed Chevron to export more than 200,000 barrels per day of crude from Venezuela, Venezuela Vice President Delcy Rodriguez called it "a damaging and inexplicable decision."
Chevron's joint ventures with state oil company PDVSA represent over a quarter of the country's entire oil output.
Maduro's 2024 reelection was backed by Venezuela's electoral authority and top court, but vehemently contested by the opposition, the U.S. and others.
Maduro and his government have always rejected sanctions by the United States and others, saying they are illegitimate measures that amount to an "economic war" designed to cripple Venezuela.
The cancellation of licenses for Chevron will reduce the dollars on offer in Venezuela's exchange market, stoking depreciation of the local bolivar currency and prices, analysts have said.
It represents the latest economic challenge for Maduro, whose government for years has applied orthodox measures to tamp down formerly sky-high inflation, restricting credit, curbing public spending and until recently, holding the exchange rate steady.
A similar wind down order by Trump's previous administration in 2020 allowed Chevron to produce crude in Venezuela and remain as a partner in the joint ventures, but banned any exports or imports by the U.S. company in the country, which led to a severe reduction of production over the time and an accumulation of billions of dollars in unpaid revenue by PDVSA to Chevron.
