Chevron can resume oil production in Venezuela as U.S. confirms license (NYSE:CVX)
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The Biden administration confirmed Saturday it would relieve some oil sanctions on Venezuela, together with granting Chevron (NYSE:CVX) a license to resume “minimal” oil output in the region immediately after U.S. sanctions stopped all drilling pursuits there 3 years in the past.
The reprieve came soon after Venezuelan President Maduro’s authorities and a coalition of political opponents agreed to put into practice a humanitarian relief system and carry on talks in Mexico City on keeping free and fair elections.
Chevron (CVX) was awarded a 6-month license from the U.S. Treasury Office that authorizes it to generate crude oil and petroleum products in its projects in Venezuela, which are operated jointly with condition-run oil organization PDVSA.
No new drilling is licensed, but Chevron (CVX) will be in a position to repair service and complete maintenance of oil fields, and it will be allowed to resume crude oil exports from the place.
PDVSA will not obtain profits from the sale of oil, as proceeds will go towards compensation of aged debt to Chevron (CVX).
Ahead of the U.S. ordered a entire halt of drilling functions in 2020, Chevron’s (CVX) share of Venezuelan crude oil generation was 15K bbl/day.
The choice also lets for U.S. oil service companies Halliburton (HAL), Schlumberger (SLB), Baker Hughes (BKR) and Weatherford International (WFRD) to restart work in Venezuela.
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