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Chevron, one of the world’s biggest oil companies, is expected to soon receive permission from the Trump administration to begin pumping oil in Venezuela again. This comes from a report by The Wall Street Journal, which says the decision is still being worked out behind closed doors. While the full details haven’t been made public yet, people familiar with the situation say that the U.S. government and Chevron are close to an agreement that would allow oil production to restart under certain conditions.
The timing of this potential deal is noteworthy. Just last week, a prisoner swap took place between the U.S. and Venezuela, resulting in the release of ten Americans who had been detained there. Many believe this event has paved the way for further negotiations. The report also states that President Trump and Secretary of State Marco Rubio participated in recent discussions regarding the situation, highlighting the high level of involvement in the decision-making process.
According to two sources who know about the agreement, Chevron would be able to pump oil in Venezuela again, but the money from taxes or royalties would not go to Nicolás Maduro’s government. Maduro is the current president of Venezuela, but the U.S. does not officially recognise him as the legitimate leader. Because of that, the U.S. wants to make sure that any business happening in Venezuela doesn’t end up supporting his regime financially. It’s still not clear how the U.S. plans to make sure that none of the money reaches Maduro’s government, but that part of the agreement is said to be very important.
This new plan would be a major change in policy for the Trump administration. Earlier this year, they cancelled the license that had allowed Chevron to work in Venezuela, a license that was originally granted when Joe Biden was president. Now, they seem to be reconsidering, possibly because of the prisoner release and changes in the global oil situation. Chevron, for its part, has said that it always follows all laws and government rules, including sanctions. A spokesman for the company told The Wall Street Journal that Chevron operates around the world in line with U.S. laws and any restrictions placed on countries like Venezuela.
News of the possible approval seems to have given investors some confidence. As of 1 p.m. Eastern Time, Chevron’s stock had gone up by about 1%. Even a small rise like this shows that the market sees the potential for Chevron to benefit from restarting operations in Venezuela. The country has some of the largest oil reserves in the world, and being able to tap into that again could help Chevron grow its supply and profits in the future.