Welligence: Venezuela Sanctions Update

(Welligence, 1.Dec.2022) — Chevron Corporation has recently secured a license to renew limited operations within the country and source critical inputs necessary for processing crude, Welligence announced 1 December 2022 over LinkedIn.

The terms offer restricted benefits to PDVSA Servicios Petroleros, SA as Chevron is restricted from providing payments to the national oil company (NOC) as well as the government. Despite the limitations, the government can lessen its outstanding debt to Chevron while the supermajor can transport crude to US refiners.

While Chevron has taken the spotlight, Eni and Repsol won US approvals earlier this year to take Venezuelan crude for repayment as well.

These events do not represent a groundbreaking movement but do showcase a shift in policy from the US in its stance towards Venezuela. This approach could lead to a gradual increase in Venezuelan barrels returning to more conventional markets and/or destinations.

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