U.S. supermajor Chevron and four oilfield services (OFS) firms are authorized to continue operations in Venezuela through Jan. 22, 2020, Kallanish Energy reports.
The U.S. Treasury Department’s Office of Foreign Assets Control renewed Monday a license allowing the companies to continue their drilling activities in the sanctioned-country. But extension on the sanction waiver prevents the companies from importing diluents to Venezuela.
This is the second time the U.S. government has granted Chevron, Halliburton, Schlumberger, Baker Hughes and Weatherford International a waiver.
Washington has had to weigh different outcomes in authorizing the three-month extension, such as the potential expropriation of Chevron’s assets in Venezuela if the company was forced to leave the country; the strengthening of relations between PDVSA and Russian and Chinese companies; as well as the further decline, although small, in Venezuela’s production.
Venezuelan opposition leader Juan Guaido had reportedly argued in favor of keeping Chevron’s waiver in place in order to avoid further damages to an already struggling oil industry.
Chevron is involved in four joint projects in Venezuela, with state oil firm PDVSA. The net output from its projects are a small part of the company’s global portfolio. Crude output offtake from the fields averaged around 40,000 barrels per day last year, given ongoing declines in production across the Venezuelan oil industry.
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