US exempts energy companies from Venezuela sanctions

Chevron and four oilfield services providers have received a fourth consecutive waiver exempting them from US sanctions on Venezuela.

The other four companies are Halliburton, Schlumberger, Baker Hughes and Weatherford.

The waiver – a general licence, granted by the Treasury Department just before midnight on Friday, 17 January – means the companies can continue to operate in Venezuela for an additional 90 days.

Since 2017 the US has imposed various sanctions on Venezuela in order to pressure President Nicolas Maduro to step down. In January 2019, sanctions targeted state-owned oil and gas firm Petroleos de Venezuela SA (‘PDVSA’).

The sanctions prohibit PDVSA from exporting petroleum to the US, freeze the firm’s US assets, and forbid financial transactions with Venezuela’s government.

Chevron, which holds a 30% stake in a joint venture with PDVSA, has received three previous waivers from the Treasury Department in order to continue to work in Venezuela, where it has operated since the 1920s. Its latest licence had been set to expire.

According to reports, the Trump administration is divided on the efficacy of the short-term sanctions waivers. While the sanctions aim to block Venezuela’s government from receiving oil revenues, some in Washington are in favour of keeping a US company in the country, especially one that can quickly bring the oil sector up to speed in the event of the regime change the Trump administration supports.

In a statement, Chevron said its operations ‘continue in compliance with all applicable laws and regulations’.

‘We are a constructive presence in Venezuela, where we have been part of the local communities for nearly a century,’ the company added. ‘We remain focused on our base business operations and supporting the more than 8,800 people who work with us and their families.’

See: https://www.treasury.gov/resource-center/sanctions/programs/pages/venezuela.aspx