Four sources said that oil?producer Chevron was in talks with U.S. officials to extend a license for its operations in Venezuela so it could increase crude exports into its refineries, and sell them to other buyers.

Washington and Caracas are progressing in their negotiations to provide up to 50,000,000 barrels of Venezuelan crude oil to the United States, and President Donald Trump is pressing American oil companies to make investments in the South American nation's energy industry. U.S. officials said this week proceeds from the Venezuelan supply of oil, which will help PDVSA, the state energy company,?drain inventory amid a severe blockade on oil,' would go to an overseen trustee in America. Proceeds will be used to supply American goods to Venezuela.

Chevron is the only U.S. major oil company operating in Venezuela. It does so under an authorized by the U.S. Government that exempts them from sanctions against the country. In July, as part of its campaign to strengthen sanctions against Venezuelan President Nicolas Maduro and weaken him, the Trump administration imposed additional restrictions on Chevron’s license. The restrictions caused the volume of Venezuelan crude that the company exported to the U.S. in December to drop from the 250,000 barrels per day it was exporting earlier this year. These restrictions also prevented?PDVSA from receiving any profits from Chevron exports. The license extension would allow Chevron, like it used to in the past, to return to its previous export levels and provide Venezuelan crude to partners who could distribute the cargoes to destinations other than the U.S. Two sources say that some of these former partners, such as an Indian refiner were making inquiries this week in Caracas regarding the possibility of resuming oil loadings in Venezuela. Washington also wants to see other U.S. firms involved in oil exports out of Venezuela. This includes refiner Valero Energy, which used to be a client of the state-owned PDVSA prior sanctions, as well as majors Exxon Mobil, ConocoPhillips, and Valero Energy, who were customers before sanctions. Three sources claim that the possible involvement of these companies has caused tension in the Caracas-Washington negotiations.

Requests for comment from Chevron and Valero as well as the U.S. Treasury Department were not immediately answered.

PDVSA announced on Wednesday that it was negotiating with the U.S. to export oil to this country at terms similar to what Chevron has agreed to. The process (...) will be based on commercial transactions that are legal, fair and transparent for both parties, PDVSA said in a statement.

Separately, a PDVSA board of directors member said that the company expected to sell its crude oil at market price. The U.S. has announced that the oil embargo against Venezuela remains in effect, and cargoes aboard vessels sanctioned by the U.S. are being targeted. Marianna Parra, Sheila Dang and Daphne Psaledakis contributed to the reporting. Simon Webb, Anna Driver and Anna Driver edited the article.

(source: Reuters)