15th June 2024

FILE PHOTO: FILE PHOTO: The brand of Chevron is seen on the firm’s workplace in Caracas, Venezuela April 25, 2018. REUTERS/Marco Bello

WASHINGTON (Reuters) – Chevron’s property in Venezuela have been mothballed and the corporate shouldn’t be allowed to drill, transport or barter oil there because the Trump administration cracks down on cash going to the federal government of socialist President Nicolas Maduro, a senior U.S. official stated.

Looking for to extend stress on Maduro, the U.S. Treasury Division late on Tuesday imposed tight new restrictions on Chevron’s joint ventures with Venezuelan state-run oil firm PDVSA, which might pave the way in which for the California-based firm’s departure.

The license “tightens and prohibits the power for Chevron or any American firm, to carry, barter, promote, take care of oil or petroleum merchandise with the Maduro regime,” the U.S. official instructed reporters in a name.

The license prohibits Chevron, which has been in Venezuela for about 100 years and is the final U.S. oil firm working there, from drilling.

Nevertheless it permits Chevron to take care of property there for when Venezuela returns to a democratic authorities, the official stated.

“Primarily we’ve mothballed Chevron’s property in Venezuela, so subsequently they’ll … be sure that they’ve the pliability to take care of their property and services,” the official stated.

Chevron didn’t instantly remark however stated on Tuesday the corporate would adjust to relevant legal guidelines and laws on actions it’s licensed to undertake in Venezuela.

Chevron final month canceled service contracts and procurement processes on the two joint ventures, a transfer the corporate attributed to falling crude costs.

The corporate stated its share of output at its joint ventures with PDVSA dropped 16% in 2019 to 35,000 barrels per day, mirroring the decline in crude output throughout the nation.

Reporting by Matt Spetalnick and Timothy Gardner; Modifying by Bernadette Baum

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