Four sources said that Chevron, an oil producer in the United States, is in discussions with the U.S. Government to extend a license for its operations in Venezuela so it can sell more crude to its refineries or to other buyers.

Washington and Caracas are progressing in their talks 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 Venezuela's energy sector.

The U.S. government announced this week that the proceeds of Venezuelan oil sales, which are expected to assist state energy company PDVSA in reducing its inventory amid a "severe" oil blockade will be paid to an overseen trustee by the U.S. The proceeds are intended to be used to supply American goods to Venezuela.

Chevron, the only U.S. oil major that operates in Venezuela is exempted from sanctions by the U.S. Government.

In July, as part of its?campaign for a more severe?sanctions to weaken Venezuelan president Nicolas Maduro's position, the Trump Administration imposed additional restrictions on Chevron’s license. These restrictions decreased the amount of Venezuelan crude that the company exports to the United States. The company's Venezuelan crude exports to the United States dropped from 250,000 barrels per day in January to around 100,000 barrels a day (bpd).

Chevron exports were also prohibited, so PDVSA was deprived of any proceeds.

The license extension?would enable Chevron to return to its previous export levels, while providing Venezuelan crude cargoes to business partners who could allocate them to destinations other than the U.S. as the company used do in the past.

Two sources reported that some of these former business partners - including an Indian refiner - were making inquiries this week in Caracas regarding the possibility of a resumption in oil loadings in Venezuela.

Washington also wants to see other U.S. firms involved in oil exports out of Venezuela. These include refiner Valero Energy which was a client of the state-owned PDVSA prior to sanctions and Exxon Mobil, ConocoPhillips and Exxon Mobil, whose Venezuelan assets had been expropriated 20 years ago.

Three sources claim that the possible involvement of these companies has caused tension in the Caracas - Washington talks.

Chevron Valero Exxon Conoco and Conoco have not responded to our requests for comment.

A spokesperson for the department said: "While we do not comment on licenses or requests specific to Venezuela, the United States Treasury fully supports President Trump's effort on behalf of Venezuelans."

PDVSA announced on Wednesday that it is progressing in its negotiations with the U.S. to export oil to this?country at terms similar to those agreed upon by Chevron, PDVSA's partner.

The statement said that "the process (...) relies on commercial transactions conducted under conditions that are legal and transparent, as well as beneficial to both parties."

Separately, a PDVSA board of directors member said that the company expected to sell its oil for market prices.

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)