HOUSTON/WASHINGTON--Chevron Corp. is preparing to take operating control of its joint ventures in Venezuela if Washington relaxes sanctions on Caracas to boost crude supplies after banning Russia's oil imports, according to three people familiar with the situation.
The U.S. oil major has begun assembling a trading team to market oil from Venezuela, two of the people said. If U.S. approvals are received, Chevron aims to expand its role in the four joint ventures it shares with state-run company PDVSA, they added.
Chevron has asked the U.S. government for a license broad enough to have a greater say at its joint ventures in Venezuela, a first step to recovering crude output and exports, and to control where oil is sent, the three people said. Since 2020, Chevron has delegated most decision making to state-run PDVSA.
U.S. officials have made clear, however, that any new authorization will depend on whether Venezuelan President Nicolas Maduro takes further political steps, two sources said, such as releasing more jailed Americans and setting a firm date for resuming negotiations with the Venezuelan opposition.
Chevron's proposed moves could revitalize Venezuela's oil output and exports after years of underinvestment and sanctions shrank it to about 755,000 barrels per day (bpd) last month from 2.3 million bpd in 2016. Chevron's joint ventures with PDVSA had produced about 200,000 bpd before U.S. sanctions and lack of financing cut their output.
A date has not been set for issuing the authorization. But Chevron has begun preparations for employees to get Venezuelan visas in Aruba, ready to head to Caracas if the U.S. Treasury eases restrictions, the people said.
Last week, U.S. President Joe Biden banned U.S. imports of Russian oil, adding to an array of sanctions after Russia invaded Ukraine, an action Moscow has called a "special military operation."
Chevron aims to begin moving Venezuelan oil to refineries as soon as next month. Last week's U.S. ban on Russian imports allows oil under existing contracts to arrive in the country through April 22.
