Three sources on the issue said (Reuters) - U.S. oil producer Chevron Corp and several European companies are in conversation with the Trump administration to obtain authorization to jointly operate with the Venezuelan state-run PDVSA.
Washington revoked the licenses and authorizations granted in recent years in March that allow PDVSA's foreign partners and customers to operate with U.S. sanctioned Venezuela and export oil to destinations including the United States, Europe and India.
The United States sent the companies to May 27 to close the deal, but did not specifically rule their work on Venezuela's employees and assets, including joint ventures.
Lawyers and experts say something needs to be clearer to complete the closure of these activities. Meanwhile, PDVSA only provided oil to customers who made advance payments or agreed to swaps, and canceled a small amount of crude goods in April to pay uncertainty.
Last week, the U.S. Treasury Department provided a separate license for U.S. oil services to leave equipment expiration in Venezuela.
Sources said several oil companies are now asking the U.S. to return at least the type of license they received between 2020 and 2022, which prevented them from expanding their operations or exporting oil in Venezuela, but allowed them to retain their shares, offices and minimums in South American countries. They spoke on anonymity because they had no right to speak publicly.
This alternative would avoid foreign companies from starting from Venezuela, but could cause PDVSA to accumulate debt again and incur more dividends due to its plan to take over operations previously controlled by the joint venture and handle exports on its own.
Venezuela's oil production has dropped sharply over the past decade due to lack of investment, mismanagement and sanctions, but the country still has the world's largest crude oil reserves.
REPSOL CEO Josu Jon Imaz said last month that the Spanish company talked with U.S. authorities about ways to hold events in Venezuela.
Chevron CEO Mike Wirth said on the company's revenue call this month that it was related to the U.S. government how to modify or expand its license.
Neither CEO has disclosed the details of its request.
PDVSA, Venezuela's Department of Oil and the U.S. Treasury did not respond to requests for comment. A Chevron spokesman mentioned Worth's latest public comment on the matter.
The last American oil company in Venezuela
Chevron took a small step to reduce operations in Venezuela, a minority stakeholder in four joint ventures controlled by state companies after PDVSA canceled goods last month.
PDVSA briefly suspended production in April in a joint oil upgrader in Petropiar, aiming to provide more raw materials for domestic refineries. Meanwhile, Chevron transferred tankers that specialize in carrying Venezuelan crude oil to handle other businesses.
With PDVSA linking approximately 300 contractors directly and indirectly with Chevron’s project, PDVSA causes about a quarter of Venezuela’s 1 million barrels of oil production per day. In recent years, the company has hired new employees.
The Chevrons have not given up their efforts to convince President Donald Trump's administration to exist in the OPEC country and export its oil is important to U.S. energy security.
"We are the only American company to stay in Venezuela," Worth said in a TV interview this month. "If we leave like everyone else, oil production continues, and American companies will be replaced by companies from other countries."
Chevron owed $3 billion by PDVSA when the previous Biden administration granted its extensive license in 2022, amassed from the previous period when U.S. companies were blocked from earnings from Venezuela. One of the sources said the authorized export mechanism allowed the company to recover almost the entire amount, but some dividends remained in the PDVSA.
President Nicolas Maduro's administration has severely rejected U.S. sanctions, and Trump has been strengthened by Trump in his criticism of what the U.S. said of elections and immigration. Venezuela said the measures constituted an "economic war" and some major partners, including China, expressed similar opinions.
"Venezuela is unstoppable. The person they were hurt (revoked the permit) is Chevron," Maduro said on a TV show last week.
If there is no other option, experts predict that by the end of 2026, Venezuela's oil production will drop by 15% to 30%.
(Reuters staff report; other reports by Sheila Dang; edited by Christian Plumb and Rod Nickel)