U.S. Shortens Chevron's Wind-Down Period to 30 Days in Venezuela under Pressure from 'Aggressive Cubans'
Updated Article:
March 4, 2025 - Caracas, [our website]**
Chevron's Venezuelan adventure is drawing to a close, thanks to the US Treasury Department snatching away its permit to operate in the oil-rich county. On Tuesday, the Treasury's Office of Foreign Assets Control (OFAC) pulled the plug on the energy titan, giving it a one-month grace period, with General License 41A (GL41A) replacing the previous GL41.
This new license rids Chevron of any authorization to continue its joint ventures in Venezuela, effective April 3. Shockingly, the restrictions even forbid basic maintenance operations, nudging the company towards an immediate exit.
The Trump administration's decision to boot Chevron from Venezuela came on February 27, justifying the move by claiming that the Maduro government had failed to meet electoral promises and was dragging its feet on migrant deportations.
The withdrawal of the sanctions waiver marks a substantial escalation of Washington's economic coercion against Venezuela, contradicting the early engagements with Caracas during Trump's tenure. Special Envoy Richard Grenell even held a high-profile meeting with Maduro, a stark contrast to the current situation.
Axios reported that the revocation of Chevron's license, a long-standing demand of foreign policy extremists and Venezuelan far-right politicians, was a result of pressure from Florida Republican House members ahead of a crucial US Congress budget decision. Key votes from Representatives Mario Diaz-Balart, Carlos Gimenez, and Maria Elvira Salazar, nicknamed "Crazy Cubans" due to their roots, played a significant role in the budget deal following the announcement of GL41's removal.
The Maduro government criticized the planned withdrawal of Chevron's sanctions exemption, branding it as "damaging and inexplicable" while promising to push forward with the country's economic recovery. Meanwhile, Caracas accused the US government of bowing to the pressure of the Venezuelan opposition and activated an "Absolute Productive Independence" plan to secure the stability of the energy sector.
GL41 was the Biden administration's only major deviation from the Trump-era "maximum pressure" campaign. However, in October 2023, OFAC issued General License 44, allowing Venezuela to freely export crude. Yet, the widespread restrictions were reimposed six months later, with the US Treasury Department now reviewing authorizations granted to other foreign corporations operating in Venezuela's oil sector.
The sanctions and embargoes continue to burden Venezuela's largest industry, affecting financial sectors, export operations, and second-round sanctions. International agents are becoming increasingly wary of transactions with state oil company PDVSA, and the company has been forced to resort to significant discounts and unreliable intermediaries in order to export crude cargoes.
Analysts predict that the fall in oil revenues will impact the Venezuelan government's social spending ability, potentially triggering renewed inflation. Chevron, which holds minority stakes in four joint ventures, currently producing around 200,000 crude barrels per day, approximately 20-25 percent of the country's total output, will abide by the Treasury's instructions to implement GL41.
The implications of this sudden withdrawal are severe, with an immediate impact on Venezuela's oil production and heightened overcompliance among international agents avoiding transactions with PDVSA.
Edited by Cira Pascual Marquina in Caracas.
Enrichment Data:
- PDVSA Disruptions: PDVSA has reportedly suspended oil loading authorizations to Chevron and canceled multiple cargoes. These actions appear to be in response to new US tariffs and sanctions.
- Export Decline: Venezuelan crude exports have dropped significantly from 815,000 barrels per day in February 2025 to 670,000 barrels per day in March, with Chevron's share plummeting from 260,000 barrels per day to 220,000 barrels per day.
- Strategic Shifts by Chevron: Chevron is diversifying its operations, focusing on regions with less geopolitical risk, such as Cyprus, and investing in renewable energy projects to mitigate the impact of exiting Venezuela.
- The Trump administration's decision to revoke Chevron's permit to operate in Venezuela follows pressure from Florida Republican House members, including Representatives Mario Diaz-Balart, Carlos Gimenez, and Maria Elvira Salazar, who are known for their hardline stance on Venezuelan politics.
- Despite the withdrawal of Chevron from Venezuela, the Maduro government has activated an "Absolute Productive Independence" plan to secure the stability of the energy sector, aiming to minimize the impact on the country's oil extraction.
- In the aftermath of Chevron's exit from Venezuela, international agents are becoming increasingly cautious about transactions with state oil company PDVSA, forcing the company to rely on significant discounts and unreliable intermediaries to export crude cargoes.
- The renewed sanctions and embargoes on Venezuela have led to a decline in Venezuelan crude exports, with Chevron's share falling from 260,000 barrels per day in February 2025 to 220,000 barrels per day in March 2025.
- Amidst the political tension and economic struggles, Venezuela continues to face challenges in various sectors, including war-and-conflicts, crime-and-justice, policy-and-legislation, general-news, casino-and-gambling, and other areas that desperately require domestic and international attention.
