Chevron, a US oil company, is reportedly in discussions with the US government to expand its operating license in Venezuela, according to sources cited by Reuters on 7/1. The company aims to increase crude oil exports to its refineries and broaden its sales to other buyers.

This development comes as Washington and Caracas are negotiating a deal for Venezuela to supply 30-50 million barrels of oil to the United States. President Donald Trump has also encouraged US oil companies to invest in Venezuela's energy sector.

This week, US officials announced that proceeds from the sale of Venezuelan oil would be channeled into a fund managed by the United States. These funds would then be used to provide US goods to Venezuela.

Chevron logo outside the company's building in Texas, US. *Photo: Reuters*

Chevron remains the sole major US oil company operating in Venezuela, holding a license from the US government that provides an exemption from sanctions.

In July, however, the Trump administration imposed further restrictions on Chevron's license, intensifying sanctions against the South American nation and aiming to weaken President Nicolas Maduro's government. Consequently, Chevron's exports of Venezuelan crude oil to the US dropped to 100,000 barrels per day in December, a significant decrease from 250,000 barrels earlier in the year.

An expanded license would enable Chevron to restore its previous export volumes and sell Venezuelan crude oil to additional business partners. These clients could then allocate the oil to various destinations beyond the United States. This week, some of Chevron's former business partners, including an Indian refinery, have already made inquiries about resuming oil loading operations in Venezuela.

Washington is actively encouraging other US companies to engage in oil export activities from Venezuela. Among those highlighted are Valero Energy, an oil refiner and former PDVSA client before sanctions, along with oil producers Exxon Mobil and ConocoPhillips. Both Exxon and Conoco previously operated in Venezuela before their withdrawal and the nationalization of their assets.

A spokesperson for the US Department of the Treasury stated that the department "is committed to supporting President Trump's efforts for the people of Venezuela," but declined to comment on specific corporate licensing requests.

On 7/1, Venezuela's state oil company, PDVSA, also announced it is negotiating with the United States regarding potential oil exports under terms similar to Chevron's. In a statement, PDVSA affirmed that "this process is based on entirely commercial transactions, adhering to legal, transparent, and mutually beneficial terms." A PDVSA executive further indicated that the company anticipates selling oil at market prices.