Venezuelan oil contractors continue operations for Chevron Corp. despite a U.S. directive to halt by early April. Ongoing work reflects difficulties in compliance, and Chevron is exploring extensions while sourcing oil from alternative regions. The Venezuelan economy relies heavily on Chevron, contributing significantly to the regime’s revenue and risking a potential GDP contraction.
Venezuelan oil contractors are maintaining operations for Chevron Corp. despite a U.S. government directive requiring the company to cease oil production in Venezuela by early April. Local firms involved in Chevron’s joint ventures with state-owned Petroleos de Venezuela SA are actively continuing their services, including managing oil wells and housing for employees.
The Trump administration’s April 3 deadline represents an escalation of pressure on Nicolás Maduro for democratic reforms, yet Chevron’s ongoing work demonstrates the complexity of complying with the order. Despite the urgency expressed by the government, local contractors have not received instructions to suspend operations, unlike the 2020 sanctions period.
Chevron’s spokesperson stated, “Chevron is aware of the President’s directive and will abide by any direction given by the U.S. Treasury Department to implement that directive.” The company emphasizes its compliance with U.S. laws and regulations, including the sanctions framework, while still loading crude oil from Venezuela, as well as importing the necessary diluents.
Experts suggest that Chevron may be negotiating an extension with the Trump administration amid the U.S. sanctions. Chevron officials indicated plans to source oil from other regions, particularly Mexico, Brazil, and the Middle East, signaling intent to maintain refinery operations without Venezuelan crude.
The Venezuelan economy is heavily reliant on oil revenues, with Chevron and other companies providing essential support as the state oil enterprise struggles. Reports indicate that joint operations between Chevron and PDVSA account for approximately 25% of the Maduro regime’s revenue, making Chevron’s potential departure a concern for economic stability, risking a GDP contraction of up to 7.5% this year.
In conclusion, despite a U.S. directive for Chevron to cease operations in Venezuela, local contractors are still actively working on joint projects. Chevron’s compliance efforts and ongoing negotiations suggest the company is exploring ways to continue its operations. The Venezuelan economy’s dependency on Chevron highlights the potential risks posed by any abrupt cessation of its activities, underscoring the interplay between U.S. sanctions and domestic economic factors.
Original Source: www.energyconnects.com
