A key license for Chevron to operate in Venezuela was revoked by U.S. President Donald Trump's government in March and a two-month period granted to wind down transactions expired this week, putting and end to the license, the company said.
However, in recent days the U.S. producer received a narrow authorization from the Trump administration allowing it to preserve assets including its joint-venture stakes and retain staff, which it had expanded in recent years.
The guidelines are similar to the terms of a U.S. license Chevron had between 2020 and 2022 before President Joe Biden's administration broadened it to allow the company's expansion in Venezuela and the resumption of crude exports to the U.S.
Chevron and several European firms had requested U.S. permits to keep assets in the South American country amid Trump's restrictive policy toward the nation. It was not immediately clear if other companies received similar instructions.
Following the new guidelines, Chevron executives this week met with contractors and Venezuelan top officials including oil minister Delcy Rodriguez to inform about the next steps, the sources said.
Under the new authorization, Chevron cannot operate oilfields in Venezuela, export its oil or expand activities as its intention is to avoid any possible payments to President Nicolas Maduro's administration.
The U.S. Treasury Department did not reply to a request for comment. Chevron said it remains in compliance with all applicable laws and regulations, including the sanctions framework provided for by the U.S.
"Attacks and illegal action against PDVSA have not stopped our growth," the state company said in a statement on Wednesday, adding that output at oilfields was normal. "Our contribution to the economy's growth does not need licenses."
Venezuela in April canceled cargoes scheduled to Chevron citing payment uncertainties related to U.S. sanctions, which cut short a May 27 deadline to wind down transactions. Chevron was exporting as much as 290,000 barrels per day (bpd) of Venezuelan oil or over a third of the country's total before that.
PDVSA, which is the majority stakeholder of the joint ventures, is expected to continue overseeing oilfield workers, though extra compensation bonus Chevron had implemented for its joint-venture workers might be suspended, three of the sources said.
The state firm also is taking over sales of crude produced by the ventures, which could lead to a new accumulation of debt owed to its partner. Earlier this month, the state firm began exporting a heavy crude jointly produced.
Trump accuses Maduro of not making progress on migrant returns and electoral reforms. Maduro has rejected sanctions by the U.S. and others, saying they amount to an economic war.
