Venezuela to keep producing oil after US revokes Chevron license

FILE PHOTO: The logo of Chevron is seen at the company’s office in Caracas, Venezuela April 25, 2018. REUTERS/Marco Bello

Caracas, Venezuela — Venezuelan President Nicolas Maduro on Wednesday said his government would continue producing oil, a day after the United States gave energy giant Chevron a month to stop operations in the Caribbean country.

Chevron produces and exports almost a quarter of the one million barrels of crude each day from Venezuela, providing vital revenue for Maduro’s government.

The US Treasury Department said Tuesday that Chevron must stop pumping within 30 days, a time frame industry insiders described as unrealistic.

“The government sanctioned a US company. Trying to harm the Venezuelan economy, they are hurting themselves because we are going to continue producing, recovering, growing and nothing and nobody is going to stop us,” Maduro said.

READ: Trump ends Chevron permit in major blow to Venezuela

Experts say the loss of Chevron-linked exports could spell recession for Venezuela and an even greater number of people fleeing the country.

For Maduro, it would immediately dry up already sparse foreign reserves — a loss of some $150-200 million per month.

Venezuela produces just over one million barrels of oil per day, of which more than 200,000 barrels come from Chevron’s operations, destined for the United States.

Chevron operated in partnership with state-owned Petroleos de Venezuela (PDVSA) in four crude oil projects.

Oil companies such as Spain’s Repsol and France’s Maurel & Prom also have individual licenses to operate in Venezuela.

Chevron operated in Venezuela under special permits that the US Office of Foreign Assets Control (OFAC) granted in November 2022, after the United States imposed an oil embargo in 2019.

Venezuela’s relations with the United States have gone through a head-snapping shift in recent weeks, with newly elected US President Donald Trump first sending envoys to engage with Maduro, but then abruptly changing tack.

Last year, the United States refused to recognize Maduro’s self-proclaimed victory in presidential elections whose results were widely disputed.

Trump has also taken aim at Venezuelan migrants to the United States, demanding Caracas accept hundreds of thousands of deportees.