U.S. aims to turn Chevron into a full Venezuelan crude marketer amid expanded sanctions strategy

Washington is on the verge of expanding Chevron’s licence to operate in Venezuela, potentially transforming the company into a major player in the Venezuelan oil market and reshaping global crude flows amid geopolitical and economic shifts.

The United States is moving rapidly to expand Chevron’s licence to operate in Venezuela, a step that would allow the company to shift how it pays Caracas, sell a larger share of its output and play a far bigger role in marketing ...

According to RegTech Times, U.S. Energy Secretary Chris Wright confirmed in a recent interview that Washington is preparing an expanded permission that would let Chevron pay the Venezuelan government in cash rather than in barrels of oil. Under the existing arrangement, Chevron must leave roughly half of its Venezuelan production in-country to satisfy taxes and fees; the change would enable the company to sell all the oil it produces and to market that crude freely inside the United States and abroad. RegTech Times reported that Chevron had not commented publicly on the possible change.

The licence expansion is part of a broader U.S. strategy to manage stranded Venezuelan barrels and control how the country’s oil is sold. Speaking at a Goldman Sachs energy conference, Mr Wright set out that the U.S. intends to exert ongoing control over Venezuelan oil sales and revenues through accounts under U.S. oversight, a policy he described as advantageous for U.S. refiners, global markets and, ultimately, the Venezuelan people, according to Axios. Wright has also said some sales proceeds are being held in Qatar-designated bank accounts under U.S. control while legal and sanctions issues are worked through, with a preference to repatriate funds to U.S. banks in due course, RegTech Times and Good Morning America reported.

The administration’s effort to unlock Venezuelan crude is already influencing price outcomes and commercial terms. RegTech Times quoted Wright as saying that under prior arrangements Venezuela received about $31 per barrel, whereas the new approach has fetched roughly $45 per barrel by enabling access to a broader set of buyers. The U.S. has begun selling some of the oil, with proceeds placed in the Qatar accounts pending longer-term arrangements.

Washington’s outreach to the Venezuelan energy sector extends beyond crude. In an exclusive interview reported by Axios, Mr Wright said the United States is seeking commercial deals for oil and critical minerals with Caracas to increase U.S. access to vital resources and support an economic recovery in Venezuela. He emphasised that such initiatives would be driven by private commercial partnerships rather than direct U.S. government funding or subsidies, and that he planned a trip to Caracas to press those aims.

For Chevron, the commercial opportunity is substantial. Yahoo Finance and Investing.com reported Mr Wright as saying Chevron believes it can grow its Venezuelan production by about 50% within 18–24 months, following discussions between President Donald Trump and oil companies about the South American nation. The Energy Secretary described interactions with Venezuelan counterparts as “fantastic”, according to those accounts. TTNews added that other U.S. oil firms, including ConocoPhillips and Exxon Mobil, are assessing possible roles in reviving Venezuela’s energy industry, but that Chevron is the only major U.S. producer currently in active operation on the ground and is expected to scale up quickly.

Venezuela holds some of the world’s largest proven oil reserves, but production has been severely curtailed by years of economic mismanagement and sanctions. RegTech Times noted the recent political shift in Caracas , the ouster of Nicolás Maduro earlier this month , as context for Washington’s intensified engagement and the drive to revive oil output. The U.S. approach combines sanctioned oversight of revenues, commercial licences for firms such as Chevron, and pursuit of private-sector investment in both hydrocarbons and critical minerals.

The policy raises questions about governance of revenues and the long-term framework for Venezuela’s oil sector. According to Axios and Good Morning America, U.S. control of sales and accounts is being justified as leverage to ensure funds ultimately benefit Venezuelans and to stabilise markets, but it also represents an unprecedented level of external oversight of a sovereign nation’s primary export. RegTech Times reported that U.S. officials are working quickly to finalise the expanded Chevron licence, while Washington refines the mechanisms for collecting, holding and eventually deploying proceeds from oil sales.

Industry executives and market participants are watching closely. If Chevron secures the cash-payment licence and follows through on plans to expand production and marketing, the company could move from operator to full marketer of Venezuelan crude, reshaping flows of oil into U.S. refineries and international markets over the coming two years, according to the reports.

Source: Noah Wire Services