Will Sanctions Be Lifted Amid Russia Crisis... US Chevron Prepares to Resume Venezuela Operations

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] The U.S. energy company Chevron has begun preparations to resume its crude oil operations in Venezuela. This move comes as the possibility of easing sanctions on Venezuela has increased due to the surge in oil prices following Russia's airstrikes on Ukraine and subsequent U.S. sanctions against Russia.

On the 14th (local time), major foreign media outlets reported, citing sources, that Chevron recently formed an internal team to restart its crude oil business in Venezuela. It is reported that Chevron has inquired with the Joe Biden administration about whether it can import crude oil from its joint venture in Venezuela.

Until 2020, Chevron developed crude oil through a joint venture with Venezuela's state-owned oil company PDVSA. When Venezuela nationalized its oil industry in 2007, other U.S. energy companies withdrew, but Chevron continued its operations.

However, the Donald Trump administration tightened sanctions in 2018, citing election fraud by Venezuelan President Nicolas Maduro, and in 2020 ordered Chevron to halt oil drilling and sales in Venezuela except for essential maintenance. As a result, Chevron handed over all management and operations of the joint venture to PDVSA. This joint venture produced 200,000 barrels of crude oil per day just before the U.S. sanctions.

In response to Chevron's inquiries, the U.S. government reportedly stated that decisions would depend on President Maduro's political actions. It would be possible only if the Maduro government takes steps such as releasing additional U.S. citizens detained in Venezuela and setting a schedule to resume negotiations with the Venezuelan opposition.

After hearing this response, although no official approval schedule has been set, foreign media reported that Chevron employees have started preparing to obtain Venezuelan visas so they can travel immediately once the U.S. Treasury Department lifts sanctions. Chevron is reportedly aiming to be able to transport Venezuelan crude oil to refineries as early as next month.

Chevron's move follows the U.S. government's announcement of independent sanctions banning Russian crude oil imports after Russia's airstrikes on Ukraine. Amid rising geopolitical risks and soaring oil prices due to U.S. sanctions, the possibility of lifting the embargo on Venezuelan crude oil is being raised. The U.S. government recently dispatched a high-level delegation to Venezuela, and Venezuela has shown willingness to improve relations by resuming dialogue with the opposition and releasing two Americans detained in the country.

This content was produced with the assistance of AI translation services.