Register with us today

and in less than 60 seconds continue your access to:Latest news headlinesAnalytical topics and featuresCommodities videos, podcast & blogsSample market prices & dataSpecial reportsSubscriber notes & daily commodity email alerts

Already have an account?

Log in to register

Forgot Password

In this list

US Treasury extends Chevron Venezuela oil-sanctions waiver to January 22

Electric Power | Natural Gas | Natural Gas (North American) | Oil | Crude Oil | Refined Products | Metals | Steel

Market Movers Americas, Feb 22-26: Commodity markets feel the impact of winter storm

Electric Power

Platts Forward Curves – Gas and Power

Oil | Crude Oil | Coronavirus | Energy Transition | Macroeconomics

37th Asia Pacific Petroleum (APPEC 2021)

Oil | Refined Products | Jet Fuel | Shipping | Tankers

Analysis: Asia-USWC fixtures stagnate on tepid US air travel demand

Electric Power | Emissions | Natural Gas | Refined Products | Dry Freight

Commodity Tracker: 5 charts to watch this week

US Treasury extends Chevron Venezuela oil-sanctions waiver to January 22


Analysts speculated Trump may have allowed waiver to expire

Russian, Chinese companies may have been brought in if waiver expired

Venezuelan output falls to 600,000 b/d in September, expected to decline further

Washington — The US Department of the Treasury on Monday extended a waiver allowing Chevron and four US oil services companies to continue to operate in Venezuela outside of US sanctions.

Not registered?

Receive daily email alerts, subscriber notes & personalize your experience.

Register Now

The waiver, which was extended until January 22, was set to expire on October 25 and some analysts had speculated the Trump administration may have allowed it to expire in order to ramp up pressure on the Maduro regime, under the assumption that Chevron's departure from Venezuela could lead to further declines in oil output.

But other analysts suggested that such a production decline would be short-lived, arguing Russian or Chinese operators would quickly take over Chevron's assets in Venezuela and keep output steady.

The waiver extended Monday is a general license originally issued by the Department of the Treasury on January 28 as the administration unveiled its most punitive sanctions on Venezuela's oil sector. The waiver allowed Chevron, Halliburton, Schlumberger, Baker Hughes and Weatherford International to continue certain work with PDVSA, Venezuela's state-owned oil company, while those sanctions were in place.

Chevron, a presence in Venezuela for roughly a century, has a 30% interest in Petropiar, a joint venture with PDVSA in Venezuela's Orinoco Belt, and holds a 39.2% interest in Petroboscan, a joint venture with PDVSA in western Venezuela. These joint ventures produced about 120,000 b/d in September, according to David Voght, managing director of IPD Latin America, an energy consultancy.

Of the 25 drilling rigs currently operating in Venezuela, 20 are supplied by PDVSA and the remaining five by US companies for Chevron's joint ventures, Voght said.

Chevron stood to lose an estimated $2.5 billion if the waiver expired, forcing the company to leave Venezuela, according to a filing with the US Securities and Exchange Commission.


Venezuela's crude output shrank to 600,000 b/d in September, according to the latest S&P Global Platts OPEC survey, even less than the 650,000 b/d it pumped in January 2003, amid a PDVSA strike.

Earlier this year, S&P Global Platts Analytics forecast Venezuelan oil output would fall to 375,000 b/d by the end of next year, in its low-case scenario, under which President Nicolas Maduro retained power, the US imposed secondary sanctions similar to its Iran oil sanctions and creditors accelerated their pursuit of PDVSA assets.

Voght said he expects Venezuelan oil output may fall to 325,000 b/d by the end of the year due to PDVSA budget cuts, ongoing power outages, a lack of human resources and theft continuing to reduce output.

On Thursday, Treasury extended a sanctions waiver allowing a Finnish oil refining and marketing company to continue its joint venture with PDVSA for six months.

The waiver for Nynas, the joint venture between PDVSA's PDV Europa unit and Finland's Neste, was also set to expire on October 25.

-- Brian Scheid,

-- Edited by Keiron Greenhalgh,