US Plans to Revoke Chevron's Operation License, Venezuela Labels Decision as 'Harmful and Incomprehensible'
Title: Trump Kicks Chevron Out of Venezuela: A Political Blow to the Oil Giant
Feb 27, 2025 (Our Website) - In a shocking move, the Trump administration has pulled the rug from under Chevron, stripping them of their US Treasury license to operate in Venezuela.
With a bold statement on social media on Wednesday, President Trump announced the scrapping of the November 2022 "oil transaction agreement," referring to General License 41 (GL41) issued by the Biden White House that had kept Chevron's activities in Venezuela alive.
"I'm cancelling that pathetic Biden 'Concession Agreement.' Effective starting March 1st," Trump declared, citing Venezuela's failure to meet "electoral conditions" and expedite the deportation of "dangerous criminals."
Contrary to his hardline campaign rhetoric against Venezuela, Trump started his second term with a diplomatic twist. Special Envoy Richard Grenell held a high-profile meeting with President Nicolás Maduro in late January. Deportations were a hot topic, with Venezuela welcoming three groups of repatriated nationals since.
Venezuela slammed the new sanctions in a statement, lamenting the consequence-laden US-led economic coercive measures. The troubled economy has been a thorn in the side of the embattled Latin American nation.
Analystslabeled the revocation of Chevron's sanctions waiver a political maneuver catering to right-wing extremists, especially from Florida. Bigwigs like Secretary of State Marco Rubio and the Venezuelan far-right opposition have long clamored for the removal of General License 41.
Florida politicians have also resisted the White House's decision to revoke an extension of Temporary Protected Status (TPS) for Venezuelans in the US. Yet their pushback seems to indicate a preference for intensifying sanctions over safeguarding their constituents' interests.
Congressman Carlos Gimenez (R) expressed his expectation for more measures targeting Caracas in the near future during a press conference. He predicted that the Maduro administration, along with its Cuban and Nicaraguan allies, was running out of days.
Trump's special envoy for Latin America, Mauricio Claver-Carone, and Senator Marco Rubio have made clear statements affirming an impending transition in Cuba. Rubio recently announced a hardening of sanctions on Cuba and Venezuela, expanding the existing visa restriction policy regarding Cuba's overseas medical missions.
Chevron, on the other hand, insists on its constructive role in Venezuela. CEO Mike Wirth claimed that the corporation was in contact with the administration and that they maintained a meaningful presence in the Caribbean country.
The license allowing Chevron to operate in Venezuela was up for automatic renewal on the first of each month for a six-month period. Its revocation before March 1st signaled a wind-down period lasting till the end of July. Trump's administration has the option of reissuing Chevron's former license, which permitted only basic maintenance operations, or finding a compromise that could involve a production cap.
The Texas-headquartered corporation holds minority stakes in four joint projects with Venezuela's state oil company, PDVSA. These ventures currently yield around 200,000 barrels per day (bpd), making up nearly a quarter of the country's total output.
Economist Asdrúbal Oliveros estimates that the cancellation of GL41 would cost Venezuela a whopping $4 billion in revenue in 2026, setbacks that could trigger inflation and impact the foreign currency supply.
Chevron's license was the Biden administration's only major departure from the "maximum pressure" campaign imposed by Trump during his first term. Washington replaced it with General License 44 in October 2023, allowing Venezuela to export crude freely for six months. However,the waiver wasn't renewed.
The Venezuelan oil industry remains crippled due to coercive measures —financial sanctions and an export embargo among them. The Treasury Department has even threatened to impose secondary sanctions on international corporations engaging with the Venezuelan oil sector without Washington's approval.
Apart from Chevron, European heavyweights like Repsol (Spain), Eni (Italy), and Maurel & Prom (France) have secured US approval to resume and expand their operations in several joint ventures. Even the Trinidad and Tobago government is seeking Washington's authorization to collaborate with Venezuela on natural gas projects.
Trinidad's state-owned National Gas Company (NGC) is involved in two offshore gas extraction projects with Shell and BP as the main operators. PDVSA won't hold shares in these energy ventures, receiving only taxes and royalties from the projects operating in Venezuelan waters.
Reports indicate that Port of Spain will look to extend the 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.
- The Trump administration's revocation of Chevron's US Treasury license marks a significant turn in the politics of Venezuela, signaling a possible intensification of sanctions.
- The scrapping of General License 41 (GL41) issued by the Biden White House has left Chevron at the mercy of hardliners who have long advocated for such a move, particularly those from Florida.
- Florida politicians, such as Congressman Carlos Gimenez (R), anticipate more measures targeting Caracas in the near future, implying a shortened lifespan for the Maduro administration and its allies.
- Chevron's continued presence in Venezuela, with operations in four joint projects with PDVSA, could face challenges given the ongoing policy-and-legislation surrounding the country's troubled oil industry.
- The revocation of GL41 could cost Venezuela up to $4 billion in lost revenue in 2026, causing potential inflation and supply issues with foreign currency.
- Amidst the political crisis, Chevron remains optimistic about its constructive role in Venezuela, engaging with the administration and maintaining its meaningful presence in the Caribbean country.
- Despite losing Chevron as a major partner, the Venezuelan oil industry is not entirely isolated, with European heavyweights and the Trinidad and Tobago government seeking Washington's approval for collaborations within the oil and gas sector.
