Three sources familiar with the decision announced on Wednesday that Chevron had been granted a limited U.S. operating license in Venezuela sanctioned by the United States. They added that money from oil revenues could not be transferred to the Venezuelan government of President Nicolas Maduro.

Last week it was reported that the U.S. is preparing to give new authorizations to key Venezuelan partners, including Chevron. This will allow them to exchange oil and operate in Venezuela with some restrictions.

The private authorization granted to the U.S. producer of oil opens a window to its oil business in Venezuela, only two months following a deadline set by Washington to joint venture partners of PDVSA, which included oil exports, to end transactions.

Chevron, along with a few European oil companies such as Repsol of Spain and Maurel & Prom of France, were granted authorizations to expand their operations in Venezuela, and to export oil to Europe and the U.S. by the former administration of Joe Biden.

In February, amid criticism of migration and democracy in Venezuela by the U.S. president Donald Trump, the licenses were revoked. The companies had until the end of May to complete the transactions.

As a result,

Chevron reduces operations

In Venezuela, the company instructed its fleet of dedicated tankers to leave and delegated operations to PDVSA. Washington allowed Chevron, as well as its joint venture stakes in Venezuela's OPEC nation, to keep its assets.

Two sources stated that the new license would allow the U.S. firm to take decisions in its joint ventures, and to contribute to the procurement and payment of contracts.

It was not clear at the time if PDVSA will assign Chevron any crude oil cargoes destined for the U.S., as no payments, including taxes and royalties, can be made to Venezuela. It is also not clear if another partner of PDVSA received a similar approval.

Chevron refused to comment on this license, and stated that it operates globally in compliance with all laws and regulations as well as U.S. sanction frameworks. PDVSA and the U.S. Treasury Department did not respond to comments made immediately.

PDVSA cancelled cargoes assigned to Chevron in April, while the licenses were still valid, due to problems with mandatory payments. Chevron has not exported Venezuelan oil since.

(source: Reuters)