• 2 days Ireland Balks At Biden’s Global Tax Plan
  • 4 days Robinhood To Trade On Nasdaq Targeting $32B Valuation
  • 8 days Facial Recognition Is Watching You
  • 9 days Biden’s $3.5T ‘Human Infrastructure’ Workaround
  • 9 days The Fed’s $3 Trillion Headache
  • 12 days Why Bitcoin Could Struggle To Recover After Epic Crash
  • 13 days Wells Fargo Back In The Spotlight Over Personal Loan Cancellations
  • 14 days Delta Variant Real Threat To Economic Recovery
  • 17 days JEDI Drama Continues With Microsoft Contract Cut
  • 19 days DiDi Shares Take a Beating From Chinese Regulators
  • 19 days Thousands Of Companies Hit In Latest Ransomware Attack
  • 20 days Jobs Report Has Big Numbers, But Still Big Problems
  • 20 days Robinhood’s ‘Mission’ Questioned in $70M Fine
  • 24 days Didi Just Went Public, And Uber Is Loving It
  • 25 days Islamic Finance On Track To Hit $3.7 Trillion
  • 26 days The Lumber Bubble Is Bursting
  • 29 days A New Entry In The Two Trillion Dollar Club
  • 30 days 3 Upcoming IPOs To Watch As IPO Market Rebounds
  • 31 days Welcome To The Used Car Bonanza
  • 32 days The Year Of The Retail Investor Keeps Getting Bigger
Oilprice.com

Oilprice.com

Writer, OilPrice.com

Information/Articles and Prices on a wide range of commodities: We have assembled a team of experienced writers to provide you with information on Crude Oil,…

Contact Author

  1. Home
  2. News
  3. Breaking News

Trump Orders Chevron To Exit Venezuela

Trump Venezuela

President Donald Trump has ordered Chevron to start "winding down" its oil production in Venezuela in the latest increase in pressure against the Maduro government in Caracas.

The AP reports that Chevron has invested some $2.6 billion in field development and equipment in Venezuela over the last hundred years and is to date the only U.S. oil company that Washington has allowed to continue operating in the country.

Yet this may soon end, as Trump seeks to tighten the noose around the Maduro government's neck further. The United States government has granted Chevron a series of exemptions from sanctions against Venezuela. With the current state of the oil industry, however, along with the push for maximum pressure on Caracas, these may end soon. If that happens, the company would be obliged to write down its investments in Venezuela. 

Chevron's last extension for its Venezuela operations expires today.

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. supermajor holds a 30-percent stake in the venture. In March, the output of Petroboscan fell by more than 50 percent to 50,000 bpd from as much as 120,000 bpd just three months later.

Until recently, Chevron was not so willing to take that asset writeoff on its Venezuelan operations. The company argued that if it leaves the country, it will create a void that will be filled by Russian and Chinese companies, which would, Chevron said, harm U.S. geopolitical interests in Venezuela. Now, the supermajor may be more willing to stop pumping oil in the South American country with oil prices off a cliff and little hope for a quick recovery.

Meanwhile, reports have emerged that the Maduro government is negotiating with the opposition; although details are not available, the fact of the talks suggests that both sides are worried about their survival amid the coronavirus outbreak, which has exacerbated an already dramatic economic and political situation.

By Irina Slav for Oilprice.com

More Top Reads From Safehaven.com:

Back to homepage

Leave a comment

Leave a comment