The new agreement could see Chevron and PDVSA export their respective crude shares separately. (Archive)
Caracas, July 24, 2025 (venezuelanalysis.com) – The Donald Trump administration has walked back a major sanctions policy by granting Chevron a new sanctions waiver to operate in Venezuela.
This week, the US Treasury Department issued a specific license allowing the Texas-based corporation to restart oil extraction and sales operations in the Caribbean nation. The Wall Street Journal first reported the move on Thursday.
White House and Treasury officials have yet to comment on the policy U-turn. Unlike general licenses, which are publicly disclosed, specific licenses can be issued privately to select firms.
A State Department official quoted by the Miami Herald offered no details on the new sanctions waiver but claimed that Washington “will not allow the Maduro regime to profit from the sale of oil.” However, both Venezuelan legislation and the fact that Chevron is a minority partner in joint ventures suggest that oil operations generate revenues for the Venezuelan state.
Chevron owns between 30 and 40 percent of shares in four joint ventures, with Venezuelan state oil company PDVSA owning majority stakes. The enterprises’ recent output stood between 200,000 and 250,000 barrels per day (bpd), roughly a quarter of the country’s total production.
The Herald report added that Chevron negotiated changes to its contract with PDVSA on Wednesday in Caracas, and that under the new arrangement, the company would pay its Venezuelan partner in barrels of oil.
With US sanctions blocking PDVSA’s access to financial markets, the Venezuelan company has allowed Chevron to take over all sales operations, delivering the owed compensation to the Venezuelan state through various mechanisms in recent years. The renewed agreement could mean that PDVSA and Chevron will commercialize their respective production shares separately. The Venezuelan state firm could also direct crude to domestic refineries.
The Trump administration’s decision marks a minor but not insignificant retreat from the “maximum pressure” campaign against Venezuela introduced in its first term (2017-2021). The South American nation’s oil industry remains under financial sanctions and an export embargo, having also been targeted with secondary sanctions and other measures aimed at cutting off its most important revenue source.
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.
Earlier this year, the Trump White House succumbed to pressure from Florida Congress members who demanded a tightening of coercive measures against Venezuela in exchange for supporting key legislative proposals from the Republican administration.
The US Treasury Department withdrew GL41 and issued a specific license in May following a wind-down period. The new waiver reportedly only allowed Chevron to perform basic maintenance activities, with PDVSA subsequently taking over oilfield operations.
In contrast to predictions of an immediate oil sector setback, Venezuela has maintained crude production and export levels in recent months. Last month, PDVSA directed 90 percent of its cargoes to Chinese refineries.
Trump’s foreign policy towards Venezuela has sparked tensions among allies. Hardliners, led by Secretary of State Marco Rubio, have openly advocated for harsher sanctions and regime change operations, whereas MAGA politicians and commentators have called for leveraging coercive measures to favor US corporate interests and stave off growing ties with China.
Washington has threatened to levy “secondary tariffs” on countries that receive Venezuelan energy exports, but the measure has not been enacted to date.
Alongside the withdrawal of Chevron’s license, the US Treasury likewise forced Eni (Italy), Maurel & Prom (France) and Repsol (Spain) to wind down their activities in the country. It is presently unknown whether the European corporations will receive similar permissions to restart operations.
The White House’s Chevron policy reversal comes in the wake of an agreement that saw Caracas release 10 detained US nationals and permanent residents in exchange for 252 Venezuelan migrants that the US had deported to the notorious CECOT mega prison in El Salvador.
Venezuelan President Nicolás Maduro acknowledged Chevron’s renewed sanctions waiver on Thursday evening, adding that there are working plans underway for the resumption of its activities. The Maduro government has consistently condemned Washington’s coercive measures while vowing that the country will continue its economic recovery.
Edited by José Luis Granados Ceja in Mexico City, Mexico.
