The Department of the Treasury’s Office of Foreign Assets Control (OFAC) has issued Venezuela General License 41A, which authorizes the wind-down of certain transactions related to Chevron Corporation’s joint ventures in Venezuela.
This action follows President Donald Trump’s decision to revoke Chevron’s license to operate in Venezuela.
Main points of this development include:
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Wind-down period: Chevron has until April 3, 2025, to wind down its operations in Venezuela. This is a significantly shorter timeframe than the usual six-month period typically granted for such wind-downs.
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Impact on Chevron: This decision represents a pause in Chevron’s more than 100-year history of operating in Venezuela and will prevent the company from recouping debts owed by Venezuela’s state-owned oil company, Petróleos de Venezuela SA (PDVSA).
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Economic implications: The move is expected to have significant consequences for Venezuela’s economy, as Chevron produces about a fifth of Venezuela’s crude annually.
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Market effects: Oil prices in the U.S. could potentially rise, particularly affecting regions that depend on Gulf Coast refiners using Venezuela’s heavy crude.
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Political context: This action is seen as a reversal of policies established by the previous Biden administration, which had allowed Chevron to resume limited operations in Venezuela in 2022.
The update to the Specially Designated Nationals and Blocked Persons (SDN) List is part of OFAC’s ongoing efforts to maintain and enforce sanctions.
This list is a reference tool that provides notice of OFAC’s actions regarding specially designated nationals and other persons whose property is blocked, assisting the public in complying with various sanctions programs.
These actions represent a significant shift in U.S. policy towards Venezuela and will likely have far-reaching implications for both countries’ oil industries and diplomatic relations.
The following individual has been added to OFAC’s SDN List:
Sources: US Department of the Treasury.
