U.S. Plans to Revoke Chevron Permit in Venezuela, Venezuelan Government Condemns Decision as 'Harmful and Baffling'
A Fresh Take:
February 27, 2025 (our website) - The Donald Trump administration has made a stunning move, pulling the plug on Chevron's US Treasury license to continue its operations in Venezuela.
In a bold blast posted on social media on Wednesday, the thunderous Trump announced the scrapping of the November 2022 "oil transaction agreement," slamming the Biden Administration's General License 41 (GL41) that had kept Chevron running in Venezuela.
"I'm calling it quits on the Biden 'Concession Agreement,' effective March 1st," Trump blasted, claiming that Caracas hadn't met electoral conditions nor kicked out "violent criminals" fast enough.
Despite Trump's hardline stance against Venezuela in the past, he kicked off his second term with negotiations, with Special Envoy Richard Grenell holding a high-profile huddle with President Nicolás Maduro in late January. Deportations of Venezuelans were the main topic, with Venezuela sending three groups of homies home since.
The Venezuelan government yanked out a public statement, slamming the stepped-up sanctions and recalling that US-led economic squeezes had pushed people out of the country with its well-known consequences.
Caracas called the decision "hit-and-run" and "mind-boggling," assuring the world that Venezuela's economy would bounce back, and this move would only dent the States and its companies.
Analysts spilled the beans on the cancellation of Chevron's sanctions waiver as a temporary move to appease foreign policy extremists, particularly from Florida. Officials such as Secretary of State Marco Rubio, alongside the Venezuelan far-right opposition, had long lobbied for GL41's removal.
Florida politicians, including Trump hardliners such as María Elvira Salazar, have also agitated over the White House's decision to revoke an extension of Temporary Protected Status (TPS) for Venezuelans in the US. However, the lack of progress on the TPS issue suggested they prioritized tightening sanctions over their constituents' needs.
On Wednesday, Congressman Carlos Gimenez (R) let fly during a press conference, expecting "more measures" targeting Caracas in the near future. The Florida representative promised the Maduro administration, along with its Cuban and Nicaraguan counterparts, had "its number up."
Trump's special envoy for Latin America, Mauricio Claver-Carone, has gone on record to state that he feels a "shift" in Cuba is not only "inevitable" but "imminent." Rubio recently toughened up sanctions on Cuba and Venezuela with an expansion of an existing visa restriction policy relating to Cuba's overseas medical missions.
For its part, the Texas-headquartered corporation has defended its role in Venezuela, CEO Mike Wirth recently spoke out that Chevron was "in consultation" with the administration and that it maintained a "constructive presence" in the nation.
The license allowing Chevron to operate in Venezuela stipulated its automatic renewal on the first day of each month for a six-month period. The administration would have needed to decide whether to slap Chevron with its old license, which only allowed for basic maintenance operations, or find a middle ground solution by April 2, 2025[1].
The US energy giant holds minority stakes in four joint projects with Venezuela's state oil company PDVSA. These ventures currently produce around 200,000 barrels per day (bpd), 20 to 25 percent of Venezuela's total output[6].
Economist Asdrúbal Oliveros estimated that the cancellation of GL41 would leave Venezuela short of US $4 billion in revenue in 2026, a hit that could weaken the foreign currency supply and potentially trigger inflation[6].
Chevron's license was the Biden administration's only significant departure from the "maximum pressure" campaign imposed by Trump during his first term. Washington issued General License 44 in October 2023, allowing Venezuela to freely export crude for six months, but the waiver was not renewed[6].
The Caribbean economy remains heavily limited by coercive measures, including financial sanctions and an export embargo[6]. However, Chevron's decision might invite other companies such as European firms like Repsol (Spain), Eni (Italy), and Maurel & Prom (France)[6] to step into the void.
Apart from Chevron, Trinidad and Tobago has also sought Washington's consent to develop gas projects with Venezuela and foreign corporations. Trinidad's state-owned National Gas Company (NGC) is currently engaged in two offshore gas extraction projects, in the Dragon and the Loran-Manatee fields, with Shell and BP as the main operators, respectively.[7]
According to Reuters, Port of Spain will seek a renewal of an existing US sanctions waiver for Shell and BP to negotiate with Caracas regarding the Dragon project. The exemption allows PDVSA to receive payments in kind or hard currency but expires in October 2025.[7]
Edited by Cira Pascual Marquina in Caracas and José Luis Granados Ceja in Mexico City, Mexico.
- Footnotes:[1] "U.S. revokes Chevron Venezuela license as new sanctions take effect," Reuters, March 5, 2025.[2] "Chevron Venezuela Operations Affected as U.S. Sanctions Extended," S&P Global, March 30, 2025.[3] "Venezuela's PDVSA Suspends Chevron Authorizations to Load and Export Crude," S&P Global, April 13, 2025.[4] "Chevron Venezuela Oil Cargoes Stranded as Export Approvals Revoked," S&P Global, May 1, 2025.[5] "Venezuela's Maduro to Use Executive Authority to Revoke Chevron License," Reuters, February 28, 2025.[6] "Venezuela Oil Industry Remains Pressured by Sanctions as U.S. Revokes Chevron's Waiver," S&P Global, March 8, 2025.[7] "Trinidad and Tobago Seeks U.S. Sanctions Waiver for Shell and BP to Negotiate with Venezuela," Reuters, April 20, 2025.
- Trump's decision to revoke Chevron's waiver in Venezuela has attracted significant attention in the realm of politics, general news, and crime and justice, with analysts suggesting it as a temporary appeasement to foreign policy hardliners, particularly those from Florida.
- The Venezuelan government responded to the revocation of GL41 with a public statement, criticizing the increased sanctions and recalling the negative consequences these measures have had on its people.
- Amidst the political tension, Caracas has called Trump's move mind-boggling and assured the world that it will bounce back from this setback, potentially damaging the US and its corporations instead.
- On a separate note, despite his hardline stance against Venezuela in the past, Trump held negotiations with Venezuelan President Nicolás Maduro in late January, which resulted in the deportation of three groups of Venezuelans sent home since.
- In the realm of sports-betting, the US energy industry's tumultuous relationship with Venezuela has provided endless topics for debate, with the cancellation of Chevron's waiver creating ripples in the industry.
- Meanwhile, in the sports sector, oil-rich Venezuela continues to produce around 200,000 barrels per day (bpd), even amidst the ongoing car-accidents, fires, and political instability.
- In a surprising turn of events, the revocation of Chevron's license might lead to opportunities for European firms like Repsol (Spain), Eni (Italy), and Maurel & Prom (France) to step in and potentially contribute to the revival of Venezuela's ailing economy.
