Chevron Corp gains US permission to ship two oil tankers to sanctioned Venezuela

According to recent reports, the US-based oil firm, Chevron Corp, recently sent two oil tankers to Venezuela. One of the tankers will load its first cargo of crude that will end up in the United States in four years.

After the US introduced sanctions on the South American country, Venezuela has seen great financial struggles. From one of the largest hyperinflations that the world has ever seen, to the lack of buyers for its greatest resource — oil — the country has struggled to while trying to find a way to reclaim economic stability.

Now, however, things might finally see a positive turn in the country, as the US issued a six-month license to Chevron, allowing it to take an expanded role at four oil joint ventures involving Venezuela. Chevron’s vessel had already approached Venezuelan waters on Friday, December 30th, ready to pick up Venezuelan crude and deliver it back to the States.

As for the other tanker, it is carrying diluents to a Chevron oil joint venture, and it is expected to reach Venezuela at some point in January 2023. The license that the US had issued will finally reopen the oil flows, which were previously shut down by US sanctions about four years back. Some have already noted that this is the first step to ease sanctions and incentivize Venezela to work with the opposition leaders during the 2023 presidential election.

The US has made the first move, political talks will decide what happens next

For now, neither Chevron nor the Venezuelan oil firm that is selling the cargo commented on the new development. However, analysts are optimistic about the situation, noting that the restoration of the oil flow could lead to further concessions between the two governments. Meanwhile, Chevron could also return to its past role of being the main producer and processor of Venezuelan oil.

Latin American energy expert, Francisco Monaldi, said that the main scenario to expect is that the license will more flexible after the two countries start communicating and political talks continue to progress. The US is holding all the cards, and Maduro will simply have to comply with all the steps as the negotiations progress. If things go well, additional licenses might emerge from these talks, as well.

In the past, the Biden administration authorized European oil firms to receive Venezuelan oil in order to recoup the pending debt. Meanwhile, individual sanctions on certain Venezuelan individuals were also removed, and several relatives of Venezuela’s first lady — previously convicted for drug trafficking — have been released. In other words, the US is showing that it is ready to work with Venezuela again.