Chevron logo is seen in this illustration taken, October 23, 2023.
The U.S. set a deadline of May 27, 2025, for companies to wind down their transactions but provided limited guidance on managing assets, employees, or joint venture stakes in Venezuela. This lack of clarity has prompted companies to seek further direction, as PDVSA has shifted to supplying oil only to customers who prepay or agree to swaps. In April 2025, PDVSA canceled several crude cargoes destined for Chevron due to payment uncertainties.
The U.S. Treasury Department also allowed a separate license for U.S. oil service firms to maintain equipment in Venezuela to expire last week. In response, several oil companies are now requesting a return to a licensing framework similar to that in place between 2020 and 2022. This would allow them to maintain their stakes, offices, and a minimal presence in Venezuela without expanding operations or exporting oil, according to the sources, who spoke anonymously due to lack of authorization to discuss the matter publicly.
Such an arrangement could prevent a mass departure of foreign companies from Venezuela but may result in PDVSA accumulating debts or owing dividends, as it plans to assume control of operations previously managed by joint ventures and handle exports independently. Venezuela’s oil production has faced challenges in recent years due to underinvestment and operational difficulties, though the country still possesses the world’s largest crude reserves.
Repsol’s CEO, Josu Jon Imaz, stated last month: “We are in talks with U.S. authorities about ways to keep activities in Venezuela.” Similarly, Chevron’s CEO, Mike Wirth, noted during a recent earnings call: “We are in dialogue with the U.S. government on how our license could be modified or extended.” Neither executive provided specific details about their requests.
Chevron, the last U.S. oil company operating in Venezuela, has scaled back activities following PDVSA’s cargo cancellations in April 2025. PDVSA briefly halted production at the Petropiar oil upgrader that month to redirect feedstock to domestic refineries. Chevron has approximately 300 contractors linked to its projects with PDVSA, which account for about a quarter of Venezuela’s 1-million-barrel-per-day oil output.
Wirth emphasized Chevron’s role, stating in a television interview this month: “We are the only American company that remains on the ground in Venezuela.” He highlighted the importance of maintaining a presence to support U.S. energy interests, noting that Chevron had recovered nearly $3 billion owed by PDVSA through export mechanisms authorized in 2022, though some dividend payments remain outstanding.
