Chevron, European firms lobby to keep stakes in Venezuela oil joint ventures

(Reuters) -Three sources close to the issue said that Chevron Corp products, US oil products and many European companies are in talks with the Trump administration to obtain statements to maintain their shares in joint projects with PDVSA in Venezuela.

In March, Washington has canceled licenses and statements granted in recent years that allowed foreign PDVSA partners and clients to work with Venezuela, which is subject to US sanctions, and export oil to destinations including the United States, Europe and India.

The United States gave companies until May 27 to calm transactions, but it has not specifically governed what you should do with employees and assets in Venezuela, including shares of joint project.

Lawyers and experts said that more clarity is needed to complete the closure of these activities. Meanwhile, PDVSA only delivered oil to customers who apply or agree to barter, and in April a handful of crude goods for Chevron was canceled amid uncertainty in payment.

Last week, the US Treasury allowed a separate license for American oil services companies to maintain equipment in Venezuela.

The sources said that many oil companies are now asking the United States to allow them to return at least to the type of license that they had between 2020 and 2022, which prevented them from expanding operations in Venezuela or exporting oil, but they allowed them to maintain their shares and offices and the minimum existence in the South America. They spoke on the condition that his identity was not disclosed because they were not allowed to speak publicly.

This alternative would avoid foreign companies ’exit from Venezuela, but it may lead to PDVSA again on the accumulation of debts and the reason for more profits on companies, as it plans to take over the previously controlled operations by joint projects and deal with exports themselves.

Venezuelan oil production has decreased sharply in the past decade due to the lack of investment and mismanagement and sanctions, but the country still maintains the largest crude reserves in the world.

The CEO of Repsol Josu Jon imaz said last month that the Spanish company was holding talks with the American authorities about ways to maintain activities in Venezuela.

Mike Worth, CEFron CEO, said in the company’s profit call this month that he was in an interview with the United States government on how to amend or extend its license.

The CEO did not reveal the details of his request.

PDVSA, the Ministry of Oil in Venezuela and the United States Treasury did not respond to requests for suspension. A spokesman for Chevron pointed to the recent general comments of Wirth on this.