Chevron is not winding down all of its activities in Venezuela or preparing to leave the oil-rich Latin American country.
Last month, U.S. President Donald Trump ordered Chevron to start “winding down” activities in Venezuela in the latest increase in pressure against the Nicolas Maduro government in Caracas.
The U.S. government has granted Chevron a series of three-month sanction waivers to continue operating in Venezuela since it started to increase pressure on Maduro’s government at the beginning of 2019.
Chevron’s last extension for its Venezuela operations expired on April 22. On that date, the Trump Administration told Chevron it had to start winding down operations in Venezuela by the beginning of December 2020.
Chevron does not actually operate any assets in Venezuela, they are partners in two operations that are operated by another company. However, Rockefeller has no intention to leave the Venezuelan oil fields at all.
Chevron operates a joint venture with Venezuela’s PdVSA in the country that is home to the world’s most abundant oil resources.
Petroboscan, the joint venture, produced around 200,000 bpd as of October, with Chevron’s share of this at 34,000 bpd. The U.S. super major holds a 30% stake in the venture.
In March, the output of Petroboscan fell by more than 50% to 50,000 bpd from as much as 120,000 bpd just three months later.
Oil Price.com / ABC Flash Point News 2020.