Washington, 24 July (Argus) — Venezuelan crude may again become available for US imports because President Donald Trump’s administration is considering re-authorizing Chevron to lift cargoes from its joint venture with Venezuelan state-owned PdV, market sources told Argus.
The move follows an exchange of prisoners between the US and Venezuela late last week. The Trump administration withdrew Chevron’s authorization to lift Venezuelan cargoes effective on 27 May.
But the administration now plans to issue a private license to Chevron substantially on the same terms as before — meaning the US major can take its share of the Venezuela joint venture output and import it into the US, a US energy industry source said.
Chevron said it “conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the US government, including in Venezuela.”
The US Treasury Department, which oversees sanctions enforcement, was not immediately available to comment.
US sanctions enforcers typically never confirm details or existence of private sanctions waivers issued to companies. The previous, public waiver was issued in 2022 by former president Joe Biden’s administration.
Crude market sources in China also expected a new sanctions waiver for Chevron imminently. China imported about 530,000 b/d of Venezuelan crude in June, up from 390,000 b/d in May, Argus estimates. That crude reaches China in contravention of US sanctions, via a network of intermediaries engaged in illegal ship-to-ship transfers.
Buyers in China will not be able to access crude cargoes lifted by Chevron if it regains the ability to tap its Venezuela joint venture output. But the availability of Venezuelan cargoes for US buyers would affect Merey differentials in China — independent Chinese refiners are able to obtain cargoes from sources under US sanctions at a substantial discount.
By Haik Gugarats and Sarah Tucker
