The U.S. Treasury Department renewed a license Friday for Chevron to operate its oil production in Venezuela, a country sanctioned by the U.S., potentially setting up a broader license agreement later in the year.
The U.S. has previously served as Venezuela’s largest oil market but oil activity between the countries has been limited amid ongoing political turmoil between Venezuelan President Nicolas Maduro and his opposition, Juan Guaido, who the U.S. recognizes as Venezuela’s rightful leader, Reuters reported.
Under the current license, Chevron is allowed to continue to maintain its staff and operation infrastructure as well as payments on third-party invoices, local taxes and utility services.
The license allows Chevron to conduct “transactions and activities necessary for safety or the preservation of assets in Venezuela,” according to the report. The oil company is also able to participate in shareholder and board meetings.
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According to the report, U.S. officials want talks between Maduro and Guaido to advance into a cohesive governing body before any broader license will be issued.
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Chevron was previously permitted to trade oil from the South American country, from 2019 through April 2020, but a maximum pressure campaign by former U.S. President Trump to have Maduro removed ended the activity.
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Venezuelan leaders are soon expected to negotiate for free elections and the release of political prisoners, with Mexico hosting the meeting. A positive outcome of these meetings could result in restoring oil transactions between the U.S. and Venezuela.
Chevron’s new license extends its current agreement through the end of November.