The Trump administration plans to revoke Chevron’s license to operate in Venezuela, reversing a prior agreement from Biden’s administration. The Venezuelan government has condemned this decision, seeing it as harmful to both economies. This shift reflects influence from hardline political factions in Florida and raises concerns over future economic sanctions that may further impact Venezuela’s recovery efforts.
Caracas, February 27, 2025 – The Trump administration has decided to revoke Chevron’s license issued by the U.S. Treasury, which permitted the company to operate in Venezuela. This announcement reverses the November 2022 agreement that allowed Chevron to resume oil activities within the nation, as outlined by General License 41 (GL41) approved during Joe Biden’s presidency.
President Trump stated, “I am ordering that the ineffective and unmet Biden ‘Concession Agreement’ be terminated as of the March 1st option to renew,” citing Venezuela’s failure to meet electoral conditions and delay in deporting violent criminals. After a hardline campaign against Venezuela, Trump initiated his second term with engagement efforts, including a meeting between Special Envoy Richard Grenell and President Nicolás Maduro, where migrant repatriation discussions took center stage.
The Venezuelan government condemned the intensified sanctions, highlighting that prior U.S.-led economic measures have exacerbated migration issues. They described the recent decision as “damaging and inexplicable,” asserting it would economically harm both the United States and Chevron’s operations.
Analysts view this cancellation of the sanctions waiver as a concession to foreign policy extremists, particularly from Florida, amidst significant budget discussions in Washington. Key figures, including Secretary of State Marco Rubio, have long advocated for the revocation of General License 41.
Florida politicians have opposed the White House’s choice to not extend the Temporary Protected Status (TPS) for Venezuelans residing in the U.S., indicating a preference for stricter sanctions over the interests of their constituents.
Congressman Carlos Gimenez (R) indicated that additional sanctions targeting Venezuela are anticipated and declared the Maduro regime, along with regimes in Cuba and Nicaragua, have “its days numbered.” Mauricio Claver-Carone, Trump’s special envoy for Latin America, asserted that a transition in Cuba is not only “inevitable” but also imminent.
Chevron has defended its Venezuelan operations, with CEO Mike Wirth emphasizing the corporation’s constructive presence in the nation. The license in question allows Chevron’s ongoing operations to be automatically renewed each month unless revoked, which, if executed before March 1st, would initiate a winding down, impacting the country significantly.
Chevron’s ventures in Venezuela, including partnerships with the state oil company PDVSA, are producing approximately 200,000 barrels per day, representing about 20 to 25 percent of the nation’s oil output. Economists predict that the withdrawal of GL41 could result in a loss of about $4 billion in revenue for Venezuela in 2026, leading to currency supply issues and potential inflation.
While the Biden administration had taken a step back from the maximum pressure campaign initiated by Trump, it did allow some operations through General License 44 in October 2023. However, this waiver was not extended, leaving the Venezuelan oil sector constrained by existing sanctions, including financial barriers and embargoes.
Besides Chevron, several European companies such as Repsol, Eni, and Maurel & Prom have received U.S. approvals to resume operations with joint ventures in Venezuela. Trinidad and Tobago is also negotiating with Washington for developing natural gas projects with significant international players.
Reports suggest that Trinidad’s National Gas Company is operating offshore gas extraction projects with major firms Shell and BP, while plans for further engagement in some energy ventures are underway, conditional on extending U.S. sanctions waivers.
The U.S. administration’s decision to revoke Chevron’s license signals a significant shift in its Venezuela policy, aligning with hardline elements in Florida politics. This move, branded as “damaging” by the Venezuelan government, raises concerns over economic repercussions in both nations. Furthermore, economic analysts warn of detrimental impacts on the Venezuelan economy, particularly in light of previous sanctions that have already strained resources.
Original Source: venezuelanalysis.com
