By Avi Salzman
President Donald Trump said on Wednesday afternoon he would rescind licenses for oil companies to operate in Venezuela. The move would impact Chevron, the only U.S. oil major operating in the country today.
Trump made the statement on Truth Social, his social media site, saying that he had made the decision because Venezuela wasn't accepting Venezuelan migrants deported from the U.S. fast enough. He ordered "the ineffective and unmet Biden 'Concession Agreement' be terminated as of the March 1st option to renew."
Under President Biden, some exceptions were made to U.S. sanctions on the Venezuelan government in return for new elections. Biden reversed some of those exceptions after the State Department said that the country's election wasn't held on fair terms, but Chevron continued to have a license.
Chevron has a joint venture with state-controlled oil company Petróleos de Venezuela SA to operate in the country. Together they were producing about 200,000 barrels of oil a day as of last August.
Chevron has been operating in Venezuela for most of the past 100 years. "We're there to help develop the economy, support the people, create jobs, and not get involved in politics, which can swing in any country from party to party," said CEO Mike Wirth on a company earnings call last year.
Chevron stock fell 0.8% on Wednesday.
In an interview with Barron's last month, Wirth said that Chevron was in regular discussion with the Trump administration about Venezuela and would "ensure that we stay in compliance with all U.S. laws."
In reaction to Trump's announcement, Chevron spokesman Bill Turenne said "We are aware of today's announcement and are considering its implications. Chevron conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by U.S. government."
Write to Avi Salzman at avi.salzman@barrons.com
This content was created by Barron's, which is operated by Dow Jones & Co. Barron's is published independently from Dow Jones Newswires and The Wall Street Journal.
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February 26, 2025 17:33 ET (22:33 GMT)
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