Trump's Government Conducts U-Turn, Clears Path for Chevron to Resume Operations within Venezuela
Chevron Granted New Sanctions Waiver to Resume Oil Production in Venezuela
In a significant move, the Trump administration has granted a new sanctions waiver to Chevron, allowing the corporation to resume and expand oil production operations in Venezuela. This marks a reversal of previous restrictions that had severely limited Chevron’s activities since 2019.
The waiver permits Chevron to lift, produce, and export Venezuelan crude oil, although U.S. officials emphasize that revenues from these sales are not to benefit the Maduro regime.
Chevron has been authorized to restart production at its Venezuelan sites, which were previously ordered to wind down under sanctions in May 2025. The company's recent output stood between 200,000 and 250,000 barrels per day (bpd), roughly a quarter of Venezuela’s total production.
Industry forecasts project a gradual ramp-up of output starting with 30,000-50,000 bpd in the first few months, possibly growing to 150,000-200,000 bpd within 1-3 years, with long-term technical potential as high as 400,000-500,000 bpd under optimal conditions.
New license terms reportedly allow Chevron to receive payment in crude oil rather than cash, which has sparked concerns about undermining U.S. policy goals aimed at limiting Maduro’s financial flows. The State Department has stated it will "not allow the Maduro regime to profit from the sale of oil," reflecting ongoing efforts to ensure revenues do not enrich the Venezuelan government directly.
The waiver emerged shortly after a prisoner exchange and amidst a complex U.S. policy balancing act—tightening some sanctions while pragmatically allowing Chevron operations to continue, partly to curb Venezuelan oil flow to non-U.S. partners like China.
The Biden administration issued General License 41 (GL41) in November 2022, allowing Chevron to resume crude pumping and exporting activities in its Venezuelan joint projects. However, the Trump administration's decision marks a retreat from the "maximum pressure" campaign against Venezuela, with the oil industry remaining under financial sanctions, an export embargo, secondary sanctions, and other measures.
Washington has threatened to levy "secondary tariffs" on countries receiving Venezuelan energy exports, but the measure has not been enacted to date. The renewed agreement could mean that PDVSA and Chevron will commercialize their respective production shares separately.
The US Treasury Department issued a specific license to Chevron to restart oil extraction and sales operations in Venezuela. An agreement was reached between Caracas and Washington, resulting in the release of 10 detained US nationals and permanent residents in exchange for 252 Venezuelan migrants that the US had deported to the CECOT mega prison in El Salvador.
The Donald Trump administration has granted a new sanctions waiver to Chevron, allowing the corporation to operate in Venezuela. Last month, PDVSA directed 90 percent of its cargoes to Chinese refineries. The enterprises' recent output stood between 200,000 and 250,000 bpd, roughly a quarter of Venezuela’s total production.
The Wall Street Journal reported the move on Thursday, July 24, 2025. Tensions among allies have arisen due to Trump’s foreign policy towards Venezuela, with hardliners advocating for harsher sanctions and regime change operations, while MAGA politicians and commentators favor US corporate interests and staving off growing ties with China. The Maduro government has consistently condemned Washington's coercive measures and vowed that Venezuela will continue its economic recovery.
- Despite resuming oil production in Venezuela, Chevron's operations are subject to the ongoing financial sanctions, export embargo, secondary sanctions, and other measures imposed by the US government, aiming to limit the financial flow to the Maduro regime.
- The current weather condition in Venezuela remains an important factor, as the country relies on oil exports for a significant portion of its revenue and economic stability, and any disruptions in oil production could impact global oil market prices and weather forecasts alike.
