Page 9 - NorthAmOil Week 22 2022

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US extends Chevron’s Venezuela waiver

US-VENEZUELA THE US Treasury Department announced last US legislators, with representatives of both the
week that it had extended the sanctions waiver Republican and Democratic parties voicing their
previously awarded to Chevron so that the com- objections.
pany could maintain its presence in Venezuela, The official position of the Biden adminis-
though without any ability to pursue normal tration is that the US will consider granting full
commercial operations. The extension will also sanctions relief to Venezuela if Nicolas Maduro,
apply to the US-based oilfield service providers that country’s incumbent president, strikes a
(OSPs) that hold similar waivers – namely, Baker deal with the coalition of opposition parties led
Hughes, Halliburton, Schlumberger and Weath- by Juan Guaido to hold a new round of parlia-
erford International. mentary and presidential elections.
Effective until December 1, 2022, the waiver The US government began restricting Chev-
sets strict conditions for these companies’ con- ron’s activities in Venezuela in 2020, when it Suggestions
tinued presence in Venezuela. Specifically, they barred the California-based company from sell-
stipulate that Chevron must minimise activi- ing oil via its joint ventures with PdVSA, Petro- that oil relations
ties such as the drilling, lifting, purchasing and Piar and PetroBoscan, and forced it to halt its
processing of Venezuelan-origin crude oil or diesel imports into the South American nation. might be revived
petroleum products by the San Ramon, Califor- Both PetroPiar and PetroBoscan are targeting
nia-based energy giant. Likewise, the OSPs must heavy crude fields in western Venezuela. have drawn
minimise support for such activities. US sanctions have had a significant impact significant
In effect, then, the sanctions regime remains on Venezuela’s oil industry, not just by restrict-
in place. Nevertheless, the administration of ing trade in the country’s crude but also by cut- pushback from
US President Joe Biden is reportedly consider- ting off its access to the parts, equipment and
ing the possibility of loosening restrictions on raw materials needed to maintain and repair US legislators.
investment in Venezuela’s oil sector. Officials in its production complexes, refineries and pipe-
Washington have hinted that Chevron may soon lines. As a result, Venezuela has turned to Iran,
be permitted to engage in talks with Venezue- another country facing US sanctions, for help.
la’s national oil company (NOC) PdVSA on the Last year, Caracas and Tehran concluded a swap
reactivation of its joint venture projects in the deal that gave PdVSA access to Iranian gas con-
South American state. densate that it could use as blendstock to mix
These hints would not represent a total its own extra-heavy crude into an exportable
abandonment of the sanctions regime, which grade.
addresses many more aspects of trade relations. According to the latest OPEC report, Ven-
Even so, suggestions that oil relations might be ezuela’s domestic oil production amounted to
revived have drawn significant pushback from 707,000 barrels per day (bpd) in April.™

Week 22 02•June•2022 www. NEWSBASE .com P9