US may ease sanctions against Venezuela, license Chevron

The US is poised to grant a license to Chevron Corp. to pump oil in Venezuela, a policy shift that signals the easing of years long sanctions and could open the door for other oil companies to do business there, Report informs referring to The Wall Street Journal.

The US oil company would regain partial control of its oil-production and maintenance activities in dilapidated Venezuelan oil fields it has retained stakes in through joint ventures with the state-run oil company Petroleos de Venezuela SA.

It wouldn’t make new investments there until certain debts are repaid, which could take years, according to people familiar with the matter.

Granting the new license is contingent on the Venezuelan government and its political opponents’ announcement, expected November 26, to implement a $3 billion humanitarian program using Venezuelan funds unfrozen by the US as well as an agreement to resume talks in Mexico City next month on resolving the country’s political crisis through free and fair elections, people familiar with the matter said.

The talks would quickly set in motion US authorization for Chevron’s return to Venezuela’s oil fields, according to the people.

“With the restart of the dialogue in Mexico, a road has been opened to the normalization of economic aspects of national life,” Venezuelan Vice President Delcy Rodriguez said at a meeting with business executives in Caracas.

In a written statement, Venezuela’s coalition opposition said it was ready to negotiate an agreement that would lead to a solution to Venezuela’s humanitarian crisis, the establishment of rule of law and the necessary conditions to hold free and verifiable elections.

The license, which isn’t permanent and would need future renewal, would return Chevron’s position in Venezuela to a sanctions framework similar to one in effect in 2019, before the Trump administration clamped down further on Chevron’s activities as part of a “maximum pressure” campaign aimed at ousting the government of Venezuela’s Nicolas Maduro.