Chevron to Initiate resume of Crude Oil Exports to Venezuela Under New Agreements with PDVSA
In a significant policy shift, the US Treasury Department has issued a private sanctions waiver to Chevron, allowing the American oil company to restart crude shipments from its joint ventures in Venezuela. This move marks a departure from the previous "maximum pressure" sanctions that have been in place since 2017.
Chevron's joint ventures with Venezuela’s state oil company, PDVSA, produce around a quarter of the country's total oil output, roughly 200,000–250,000 barrels per day. Under the new arrangement, Chevron will pay its Venezuelan partner in barrels of oil, which may limit direct cash revenues flowing to the Maduro government.
The waiver follows a shift in US policy and coincides with a migrant deportation agreement and a prisoner exchange between the US and Venezuela. The Biden administration appears to be recalibrating sanctions to enable limited oil exports while trying to prevent direct profits for Maduro's regime.
Chevron's CEO, Mike Wirth, has stated that the immediate financial impact on the company may be limited but sees the move as important to start recouping debts from Venezuela. The company commits to full compliance with US sanctions.
The arrangement has complex implications for both Chevron's business and Venezuelan oil revenues. For Chevron, the waiver allows a strategic reentry into Venezuela, securing its investments and operational interests after prior restrictions reduced its presence to maintenance only. For Venezuela, renewed Chevron operations promise a boost to oil production and exports, which are vital to the country's economy, but may only partially translate into government revenues due to the payment-in-oil arrangement.
Some analysts argue that the arrangement risks undermining the US policy objective of limiting funds to Maduro, as any oil production supports Venezuelan state resources to some extent. However, it is important to note that the agreement does not result in any income for the Venezuelan state in the form of taxes and royalties, with these payments being the responsibility of the joint venture itself.
In August 2025, Chevron is expected to retain control over oilfield operations, with respective crude shares to be sold separately by Chevron and PDVSA. The company has announced that a "limited amount of oil" will flow to US refineries in August. Meanwhile, Venezuela's oil industry has managed to maintain output and export levels in recent months, with 90% of PDVSA's cargoes destined for customers in China in June.
The oil sector in Venezuela has been targeted by financial sanctions, an export embargo, secondary sanctions, and other measures since 2017. The specific license for Chevron's operations in Venezuela was issued following reports and confirmed by anonymous sources to Reuters.
The Venezuelan Central Bank has not published inflation figures since October 2024, and the bolívar (BsD) has significantly devalued in recent months, with the USD-BsD exchange rate growing by 244 percent in the last 12 months. Economists have argued that currency devaluation in Venezuela is driven by speculative activities.
This development is also being closely watched by other energy corporations, including Spain's Repsol and Italy's Eni, which are reportedly seeking similar approval from Washington to resume energy activities in Venezuela. Several Trump allies have urged the administration to leverage sanctions to the benefit of US corporations such as Chevron, expressing concerns about growing "Chinese influence."
[1] Reuters (2025). Exclusive: U.S. issues private license to Chevron to restart Venezuela oil exports. [online] Available at: https://www.reuters.com/business/energy/exclusive-us-issues-private-license-chevron-restart-venezuela-oil-exports-2025-08-01/ [2] Bloomberg (2025). Chevron Set to Resume Oil Production in Venezuela After U.S. Sanctions Waiver. [online] Available at: https://www.bloomberg.com/news/articles/2025-08-01/chevron-set-to-resume-oil-production-in-venezuela-after-u-s-sanctions-waiver [3] Financial Times (2025). Chevron to restart Venezuela oil exports after US sanctions waiver. [online] Available at: https://www.ft.com/content/8251a45d-75b5-4c8a-824e-358c6838d172 [4] Associated Press (2025). Chevron to restart Venezuela oil shipments after US sanctions waiver. [online] Available at: https://apnews.com/article/business-oil-and-gas-venezuela-economy-us-business-45605e98008143188c585c7f464d38c8
- The waiver granted to Chevron by the US Treasury Department represents a strategic move within the energy industry, allowing the company to potentially strengthen its financial position in the oil-and-gas business and recoup debts from Venezuela.
- The renewed Chevron operations in Venezuela, under the new payment-in-oil arrangement, may provide a boost to the country's energy sector and contribute to its broader economy, but the limited direct cash revenues to the Maduro government suggest a shift in the distribution of profits within the finance sector.
