Saturday, January 28, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use
Oil Market News
  • Home
  • Marketdaily
  • Price
  • crudenow
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEChot
  • brend
  • ships
Oil Market News
Home investing

Chevron can resume key role in Venezuela’s oil output, exports By Reuters

2 months ago
in investing
Chevron can resume key role in Venezuela’s oil output, exports By Reuters
Share on FacebookShare on Twitter

Latest Oil News

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023
ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

January 26, 2023
Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

January 25, 2023
Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

January 24, 2023


Chevron can resume key role in Venezuela's oil output, exports
© Reuters. The logo of Dow Jones Industrial Average stock market index listed company Chevron (CVX) is seen in Los Angeles, California, United States, April 12, 2016. REUTERS/Lucy Nicholson/File Photo

By Daphne Psaledakis and Marianna Parraga

WASHINGTON/HOUSTON (Reuters) -Chevron Corp on Saturday received a U.S. license allowing the second-largest U.S. oil company to resume production in Venezuela and to bring the South American country’s to the United States.

The decision grants expanded rights for the last big U.S. oil company still operating in U.S.-sanctioned Venezuela. However, it restricts any cash payments to Venezuela, which could reduce the amount of oil available to export.

License terms are designed to prevent state-run oil firm Petróleos de Venezuela, SA, known as PDVSA , from receiving proceeds from Chevron (NYSE:)’s petroleum sales, U.S. officials said. The license lasts for six months and will be automatically renewed monthly thereafter, the U.S. Treasury said.

The U.S. authorization “brings added transparency to the Venezuelan oil sector” and allows Chevron to benefit from sales of “oil that is currently being produced” by its joint ventures with PDVSA, the California-based company said in a statement.

POLITICAL TALKS

Following oil sanctions on Venezuela in 2019, Chevron received an exemption to trade its Venezuelan crude to recoup pending debts. But those privileges were suspended a year later. Chevron’s four PDVSA joint ventures produced about 200,000 barrels per day of crude oil and exported the crude around the world prior to the sanctions.

The United States issued the license on the same day that Venezuela and opposition leaders began a political dialogue in Mexico City by agreeing to ask the United Nations to oversee a fund providing food, healthcare and infrastructure to Venezuelans.

Terms bar Chevron from helping the OPEC member develop new oilfields but provides a way for the company to recoup some of the billions of dollars owed by PDVSA through the oil sales. It also allows the U.S. company to import supplies to help process the country’s crude oil into exportable grades.

The United States, which first levied sanctions on PDVSA in 2017, said it reserved the right to rescind or revoke the license at any time. A spokesperson insisted the authorization was not a response to this year’s sharp rise in energy prices.

“This action reflects longstanding U.S. policy to provide targeted sanctions relief based on concrete steps that alleviate the suffering of the Venezuelan people and support the restoration of democracy,” the U.S. Treasury Department said in a statement.

The United States over the years has increased sanctions on Venezuela, seeking to oust socialist President Nicolas Maduro over his 2018 reelection, which was not recognized by the west. Maduro has clung to power with the help of PDVSA, Russia and Iran.

Maduro has gained new clout with the rise of leftist leaders in Latin America and a fractured opposition struggling from a lack of funds, and with leaders exiled or imprisoned.

U.S. officials traveled to Caracas this year and held talks that led to the release of seven Americans held in Venezuelan jails in return for the release of two relatives of Maduro held on drug convictions.

U.S. REFINERS

The authorization provides limited new supplies of crude to a market struggling to replace Russian barrels shunned by Western buyers over its invasion of Ukraine. Chevron and other U.S. oil refiners could benefit from supplies of Venezuela’s heavy crude flowing to their U.S. Gulf Coast processing plants.

Analysts cautioned that Maduro is likely to bristle at license restrictions, including the lack of cash payments that his administration sought.

The authorization bans any payment of oil royalties and taxes to the Venezuelan government, or in-kind payments to PDVSA. It also bars Chevron from transactions with Russian-controlled companies operating in Venezuela.

Terms will “require significant reporting by Chevron on financial operations of their joint ventures to ensure transparency,” a U.S. official said, adding that other sanctions on Venezuela and its officials remain in place.

“There is not a big incentive in the short term” for Venezuela, said Francisco Monaldi, an expert on Latin American energy policy at Rice University’s Baker Institute for Public Policy. Terms could be relaxed over time, he added.

“We’ll see how Maduro’s government reacts to it and how many cargoes will be assigned to Chevron after,” Monaldi said.

The United States earlier this year began considering Chevron’s request to expand operations with more urgency as Washington sought oil to replace supplies hit by sanctions on Russia over its invasion of Ukraine and more recently as OPEC cut its output.

Venezuela holds about 300 billion barrels of oil reserves, the world’s largest, but has been unable to hit its production targets due to underinvestment, poor maintenance, lack of supplies and U.S. sanctions.



news.google.com

Tags: ChevronExportsKeyoiloutputresumereutersroleVenezuelas
Previous Post

Mosman Oil and Gas sees Cinnabar as a potential “step-change”

Next Post

US provides Chevron limited authorization to pump oil in Venezuela after reaching

Related Posts

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

by Oil Market News
January 27, 2023
0

© Reuters. FILE PHOTO: United Arab Emirates' Industry Minister Sultan Ahmed Al Jaber speaks during the Abu Dhabi International Petroleum...

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

by Oil Market News
January 26, 2023
0

The image that comes to mind when I think of fossil fuel villains is Batman’s adversary Two-Face. To be two-faced...

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

by Oil Market News
January 25, 2023
0

© Reuters. Chevron goes big with new $75 billion buyback, surpassing Exxon's By Investing.com Staff Chevron (NYSE:) shares rose 2.5%...

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

by Oil Market News
January 24, 2023
0

© Reuters. FILE PHOTO: Crude oil storage tanks are seen from above at the Cushing oil hub, in Cushing, Oklahoma,...

Wells Fargo, Disney, and 10 Other Stocks Value Investors Are Watching

Wells Fargo, Disney, and 10 Other Stocks Value Investors Are Watching

by Oil Market News
January 23, 2023
0

Text size Eaton Vance’s Aaron Dunn expects cost cutting at Disney and a more balanced approach to growth and profitability...

12 Best Algae and Biofuel Stocks To Buy

12 Best Algae and Biofuel Stocks To Buy

by Oil Market News
January 22, 2023
0

In this article, we will take a look at the 12 best algae and biofuel stocks to buy. To see...

Next Post
US provides Chevron limited authorization to pump oil in Venezuela after reaching

US provides Chevron limited authorization to pump oil in Venezuela after reaching

Subscribe
Notify of
guest
guest
0 Comments
Inline Feedbacks
View all comments

Trend Oil News

Berkshire Hathaway posts $43.8 billion loss as stock holdings tumble By Reuters

Berkshire Hathaway posts $43.8 billion loss as stock holdings tumble By Reuters

6 months ago
Navy conducts route march, pledges to end crude oil theft, others | The Guardian

Navy conducts route march, pledges to end crude oil theft, others | The Guardian

3 months ago
How OPEC outplayed Biden – Oil & Gas 360

How OPEC outplayed Biden – Oil & Gas 360

3 months ago
2 Top TSX Energy Stocks to Buy as Crude Oil Soars

3 Super-Cheap TSX Energy Stocks to Buy Right Now

2 months ago
Renewables: Big Oil is missing the opportunity high profits create

Renewables: Big Oil is missing the opportunity high profits create

3 months ago
ADVERTISEMENT
Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

Bob Simpson’s TXO Energy goes public, soars 10% on first trading day

January 27, 2023

Internet of Things-as-a-Service to Enable Improved Opportunities

January 27, 2023

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023

White House blasts Big Oil stock buybacks again as Chevron profits double

January 27, 2023

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023

Trinity To Spud Jacobin Well In Second Quarter Of 2023

January 27, 2023

Crude Oil

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

German Crude Oil Imports Rose 11% in 2022 As Crude Import Bill Doubles

January 27, 2023
Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

Europe Is Diversifying Its Diesel Sources Ahead Of Ban On Russian Fuel

January 26, 2023
Opinion | Should the Strategic Petroleum Reserve Be Used Now?

Opinion | Should the Strategic Petroleum Reserve Be Used Now?

January 25, 2023
Rising Crude, Oil Products Inventories Weigh On Oil Prices

Rising Crude, Oil Products Inventories Weigh On Oil Prices

January 24, 2023

Investing

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

U.S. lawmakers ask Kerry to urge UAE to replace oil boss as COP28 president By

January 27, 2023
ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

ESG Investing Fight Is Heating up in Kentucky and Could Cost Taxpayers

January 26, 2023
Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

Chevron goes big with new $75 billion buyback, surpassing Exxon’s By Investing.com

January 25, 2023
Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

Oil falls $2/barrel on economic jitters, U.S. crude stock build By Reuters

January 24, 2023

Market

Chevron profits slip as oil and gas prices fall

Chevron profits slip as oil and gas prices fall

January 27, 2023
Big Oil’s cash bonanza | Financial Times

Big Oil’s cash bonanza | Financial Times

January 26, 2023
NYC pension schemes test support for climate action at bank meetings

NYC pension schemes test support for climate action at bank meetings

January 25, 2023
Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

Oilfield services groups cheer ‘structural upcycle’ after highly profitable year

January 24, 2023

OPEC

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

OPEC to Stay the Course on Oil Production Agreement; China’s Reopening Bullish for

January 27, 2023
Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

Biden vowed to punish Saudis over OPEC cut. That’s no longer the plan

January 26, 2023
Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

Oil Steadies as Traders Look to China, OPEC for Fresh Triggers

January 25, 2023
FG tasks 2023 OPEC’s President on attracting investments in oil

FG tasks 2023 OPEC’s President on attracting investments in oil

January 24, 2023
  • Submit news
  • Contact
  • DMCA
  • Cookie Privacy
  • Privacy Policy
  • Terms of Use

© 2022 OilMarket.News

No Result
View All Result
  • Home
  • Market
  • Price
  • crude
  • Companies
  • politics
  • Gas
  • investing
  • Stock
  • OPEC
  • brend
  • ships

© 2022 OilMarket.News

wpDiscuz
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.