WASHINGTON: The Biden administration is considering a Chevron Corp proposal to allow the US oil major to accept and trade Venezuelan oil cargoes to recoup unpaid debt, four people close to the discussions said.
Chevron representatives in recent months held at least one high-level meeting with US diplomats along with Venezuelan opposition envoys, according to two of the people. They described it as a milestone in the company’s year-long lobbying efforts to win a change in its license to operate in Venezuela.
No decision was reached, said two sources in Washington who declined to be identified, and a timetable for further review remains unclear.
Chevron wants Washington to reinstate trading privileges it enjoyed for a time under former President Donald Trump’s administration. The company and other foreign producers were permitted to take and export Venezuelan oil to recoup dividends and debt from joint ventures with state-run oil company PDVSA.
That arrangements which until mid-2020 allowed Chevron to trade 1 million to 2 million barrels per month of Venezuelan crude, was suspended under Trump’s “maximum pressure” campaign.
The strategy took a big toll on Venezuela’s oil shipments, but has recently fallen short of blocking oil revenue from getting to Venezuela President Nicolas Maduro, allowing an export bounce.
“The Biden administration has more and more incentives to ease sanctions on Venezuela after Trump’s failed strategy,” said one of the people familiar with the meetings. “One of the most important ones is to bring something to the negotiation table” with Maduro, one of the sources said.
Venezuela owes hundreds of millions of dollars to Chevron, the last U.S. oil major with staff in the country, from its joint ventures.
“It is a regular practice to meet with US government officials to provide perspectives on energy issues important to the company,” Chevron spokesman Ray Fohr said in response to questions about the company’s lobbying.
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