(Bloomberg) – The Trump administration has restored Chevron Corp.’s ability to pump oil in Venezuela, according to a person familiar with the matter.
Full details of the decision were not immediately clear. The move came around the same time Washington and Caracas brokered an agreement that saw the release of 10 Americans detained in Venezuela, while 250 Venezuelans who were imprisoned in El Salvador were returned to their home country.
Key to the arrangement was an assurance that no royalties or taxes would benefit the government of Venezuela’s socialist leader, Nicolas Maduro, according to the person, who requested anonymity to discuss the matter.
Oil futures pared some their earlier gains on news of the move by the administration, which raises the prospect of increased supplies coming onto a market already facing the threat of oversupply. Brent crude was just 0.1% higher for the day at $68.57 a barrel as of 1:05 p.m. New York time.
A White House spokesperson did not immediately respond to a request for comment. The Wall Street Journal first reported the move.
“Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the U.S. government, including in Venezuela,” Chevron spokesman Bill Turenne said in a statement.
The U.S. revoked Chevron’s license to pump oil in Venezuela earlier this year, part of President Donald Trump’s effort to pressure the Maduro government. The decision to block the company’s operations was hailed by national security hawks in Trump’s administration, including Secretary of State Marco Rubio.
The license would allow the Houston-based oil giant to resume production at its sites in Venezuela after being ordered to wind-down operations in May. It would also help pump much-needed US dollars into Venezuela’s economy, which is showing signs of decline.
Chevron’s license to operate in Venezuela has become a chip in negotiations between Maduro and the U.S., and those within the Trump administration have advocated for different approaches. Rubio has advocated for a tough stance, while special envoy Ric Grenell and others have pushed for a more transactional relationship.
