Chevron has until 3 April to wind down its crude production and exports in Venezuela, according to new guidance that the US Treasury Department's sanctions enforcement arm issued today.
US president Donald Trump on 26 February said he would not extend a sanctions waiver that allowed Chevron to lift crude cargoes from its joint venture with Venezuelan state-owned PdV.
Chevron resumed its operations in Venezuela in November 2022 and gradually increased production there, becoming the sole importer of Venezuelan crude into the US — at a pace of 231,000 b/d last year, according to US Energy Information Administration data.
"We are aware of the president's directive and will abide by any direction given by the US Treasury Department to implement that directive," Chevron said, adding that it "conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by US government."
Venezuelan crude imports into the US are coming to a halt while Canadian heavy crude imports by pipeline have become subject to a 10pc import tax from 4 March.
Today's guidance from Treasury's Office of Foreign Assets Control does not address the status of other exceptions from Venezuela sanctions granted to dozens of other companies in 2022-2024 to allow them to load crude and other energy commodities from PdV. Some of those crude cargoes ended up delivered to ports in Spain and Italy in the past two years.
Independent refiners in China are the primary customers for Venezuelan Merey crude, imported through a network of ships, agents and brokers established to circumvent US sanctions. The scheme resulted in significant discounts for Chinese buyers of Merey, which traded at discounts ranging from $6.50-7/bl against May Ice Brent, for March arrival.
