During the company’s second-quarter earnings call on Friday, Chevron CEO Mike Wirth confirmed the upcoming resumption but tempered expectations. “Exports will begin with a limited amount,” Wirth said, adding that the flow of Venezuelan barrels would not materially affect the company’s third-quarter financial performance.
Chevron’s operations in Venezuela had been on pause since April, when state-run oil company PDVSA suspended cargoes to the U.S. firm amid payment issues tied to American sanctions. Prior to the suspension, Chevron was exporting roughly 250,000 barrels per day (bpd) of Venezuelan crude—nearly 30% of the country's total oil exports in the first quarter.
The current reauthorization resembles a license previously granted during President Joe Biden’s administration, but it comes with tighter constraints. Crucially, it prohibits Chevron from making any payments to President Nicolás Maduro’s government in currency. Instead, the arrangement is expected to involve in-kind payments—such as royalties and taxes paid through barrels of crude or swap deals. In such deals, Chevron may supply PDVSA with needed diluents in exchange for crude volumes.
The license renewal comes at a politically sensitive moment. In March, the U.S. had revoked Chevron’s previous license as part of a tougher stance on Venezuela, only to reverse course last month after a successful prisoner exchange and growing bipartisan pressure from Congress. Lawmakers had warned that blocking Chevron from Venezuelan oil would risk pushing more barrels toward China, rather than securing them for U.S. refiners.
Even so, Chevron remains one of the few Western companies allowed to do business in Venezuela’s oil sector. European partners of PDVSA are still waiting for authorization to resume operations or direct exports to their refineries.
Meanwhile, Chevron has been taking steps to ensure a smooth reentry. According to shipping sources, its Venezuela unit has ordered fresh inspections of PDVSA’s aging loading terminals to prepare for upcoming shipments. The company has also been in talks with PDVSA over a revised off-take mechanism, one that complies with sanctions and addresses Venezuela’s financial limitations.
Despite the green light, analysts caution that a return to earlier export volumes is unlikely in the near term. “Although we expect deliveries to return to the U.S. in short order, comments from CEO Mike Wirth indicate we shouldn't expect a rebound to the volumes seen earlier in the year any time soon,” said Matt Smith, lead oil analyst at Kpler.
In the interim, U.S. Gulf Coast refiners have adjusted by increasing their intake of Middle Eastern and South American crudes in July, filling the gap left by Venezuelan supplies.
Chevron’s cautious reentry into Venezuela is part of a broader geopolitical and economic balancing act—one that weighs energy security, diplomatic negotiations, and the ever-changing landscape of global oil markets.