The administration of Donald Trump has issued a stark ultimatum to Chevron, a major American oil company, giving it a deadline of April 3, 2025, to wrap up its operations and oil exports from Venezuela. This directive follows a revised license update released by the U.S. Department of the Treasury, directly impacting Chevron's activities within the South American nation.
The newly imposed restrictions curtail Chevron’s dealings related to its joint ventures with Venezuela's state oil company, Petróleos de Venezuela (PDVSA), under the leadership of Nicolás Maduro. Historically, Chevron has exported over 200,000 barrels of oil daily from Venezuela, but these activities will have to come to a halt under the new regulations laid out by the Office of Foreign Assets Control (OFAC).
“Effective March 4, 2025, General License No. 41, dated November 26, 2022, will be entirely replaced and revoked by this General License No. 41A,” the OFAC announcement outlined. The Venezuelan Ministry of Communications has yet to respond to this development, and OFAC has not provided further insights into the implications of this license withdrawal.
President Donald Trump had previously announced the revocation of concessions granted by former President Joe Biden to the Maduro regime in Venezuela through his Truth Social account last Wednesday. According to Trump, the decision terminates an agreement concerning oil transactions and electoral conditions formed on November 26, 2022, which he alleges has not been honored by the Venezuelan regime.
“We are undoing the corrupt giveaways that Joe Biden gave to Nicolás Maduro of Venezuela concerning oil transaction agreements, and also regarding electoral conditions within Venezuela, which the Maduro regime has not adhered to,” stated President Trump.
Delcy Rodríguez, Venezuela's Vice President, described the decision as "damaging and inexplicable" in response to the license revocation announcement last week. The move impacts Chevron's joint ventures with PDVSA, which account for over a quarter of Venezuela's oil production.
It is important to note that the re-election of Nicolás Maduro in 2024 was endorsed by Venezuela's electoral authority and Supreme Court but faced strong opposition from both local adversaries and the international community, including the United States, which does not recognize the legitimacy of his presidency.
Trump's action aligns with ongoing economic sanctions against Venezuela, aimed at applying pressure on Maduro's government and restricting the country's ability to generate revenue from its primary resource: oil.
Key Questions About Chevron's Exit from Venezuela
What is the deadline for Chevron to cease its operations in Venezuela?
Chevron has been given until April 3, 2025, to end its operations and oil exports from Venezuela under the directive from the U.S. Department of the Treasury.
How does this decision affect Chevron's joint ventures with PDVSA?
The decision limits transactions related to Chevron's joint ventures with PDVSA, which are crucial as they account for over a quarter of Venezuela's oil production.
Why is the United States withdrawing Chevron's license in Venezuela?
The withdrawal aligns with the U.S. strategy to impose economic sanctions on Venezuela, aiming to pressure Nicolás Maduro's government and limit its oil revenue capabilities.