Chevron Gets Trump Administration’s Nod To Resume Oil Production In Venezuela: Report

Chevron (CVX) has reportedly received approval from the Trump administration to restart pumping oil in Venezuela. 

Chevron’s stock gained 1.2% in midday trade on Thursday. On Stocktwits, retail sentiment moved higher within the ‘bullish’ zone.

According to a report by The Wall Street Journal (WSJ), the agreement’s terms remain unclear. It noted that the development comes after President Donald Trump and Secretary of State Marco Rubio’s recent discussions with Venezuela, which resulted in the release of 10 detained Americans in the country. 

“Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the U.S. government, including in Venezuela,” Chevron spokesman Bill Turenne told The WSJ.

Chevron had been one of the main oil producers in Venezuela, operating through joint ventures with the state-owned oil company PDVSA.

Earlier this year, the Trump administration revoked Chevron’s licenses to operate and export crude oil from Venezuela, citing the country’s failure to meet democratic electoral conditions and to let migrants return to the U.S. The revocation of those licenses had forced Chevron to wind down its operations in Venezuela. 

Venezuela reportedly canceled scheduled crude cargoes to Chevron due to payment uncertainties linked to U.S. sanctions, further complicating operations.

Meanwhile, the company reportedly wrapped up its oil production, service, and procurement contracts in the country by May, delegating governance of the joint ventures to PDVSA and keeping its local staff employed under limited U.S. authorization. 

Chevron’s stock has gained more than 6% this year so far and barely 1% in the last 12 months.

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