US oil licenses and authorizations for Venezuela

Since the United States first imposed sanctions against Venezuela's energy industry in 2019, it has granted licenses to certain oil companies, allowing them to export Venezuela's oil into specific destinations.

Washington imposed sanctions after international observers reported irregularities at elections which have kept Nicolas Maduro on the throne repeatedly.

Donald Trump, the U.S. president, announced on Wednesday that he would revoke a license for a U.S. oil producer Chevron Corp. He accused Maduro of not making progress in electoral reforms or migrant return.

According to data from vessel monitoring, in January crude exports via active U.S. licences averaged 450,000 barrels a day (bpd), which accounted for 52% the total country's exports. China is still the primary destination for Venezuelan oil despite all the authorizations.

This is a list relating to the energy sector in Venezuela that has been granted by U.S. Treasury Departments and State Departments over the past few years.

U.S. COMPANIES

Chevron, a U.S. company with operations in Venezuela, was hit by the sanctions imposed in 2019. U.S. companies such as SLB, Halliburton Baker Hughes, and Weatherford, which provide services in Venezuela, were also affected.

The U.S. Treasury Department has allowed the majority of foreign partners to the state oil company PDVSA, to continue to produce oil in Venezuela while exporting it to other destinations than the U.S.

In 2020, as part of Trump's campaign to impose'maximum' pressure on Maduro's regime, certain firms that trade and ship Venezuelan oil, such as units of Russia's Rosneft were also sanctioned.

PDVSA's partners, including Chevron, ceased to export Venezuelan oil. This led to an accumulation of debts and dividends. The state company then began to use little-known intermediaries to distribute its crude to China.

The administration of President Joe Biden granted a license automatically renewable to Chevron in late 2022 to expand operations and resume exports into the U.S., with the aim to recover up to $3 billion worth of debt.

Trump announced on Wednesday the termination of the deal.

EUROPEAN COMPANIES

Since 2019, the U.S. State Department issued individual authorizations for European companies, including Spain's Repsol. Italy's Eni. and France's Maurel & Prom. to operate in Venezuela and to export Venezuelan oil.

The majority of authorizations allow European companies to exchange PDVSA's Venezuelan oil for refined products. This has helped ease the shortage of motor fuels, diluents, and extra heavy oil production in the OPEC nation.

The permits issued during Biden's presidency limited the destinations for Venezuelan crude cargoes that were sent by PDVSA’s European partners. This has led to an increase of Venezuelan oil imports by countries authorized such as Spain.

INDIAN COMPANIES

Reliance Industries, an Indian refiner, has received U.S. approvals infrequently over the past few years. The most recent authorization is in effect since 2024.

The permit allowed for small quantities of Venezuelan oil to flow into India, its third largest market before sanctions were implemented.

TRINIDAD

Biden's administration issued two licenses to BP and Shell for projects involving natural gas between Venezuela and Trinidad and Tobago.

Trinidad is aiming to extend both authorizations so that the projects can ensure first gas production to be delivered to Trinidad in the coming years. (Reporting and editing by Marianna Pararaga.

(source: Reuters)