WPB: Despite a license explicitly prohibiting payments to the Venezuelan government, the Biden administration secretly allowed Chevron to send hundreds of millions of dollars to the South American country.
According to Bloomberg sources, an addendum to Chevron’s November 2022 sanctions waiver allowed the U.S. energy giant to pay oil-related taxes and royalties to the government of Venezuelan President Nicolás Maduro without violating U.S. laws.
The Office of Foreign Assets Control (OFAC) initially granted Chevron a waiver to conduct limited operations in Venezuela.
Under former U.S. President Donald Trump, this waiver was revoked, forcing the oil major to halt its activities in Venezuela.
Chevron stated:
“The company operates globally in full compliance with all laws and regulations, including U.S. government sanctions frameworks.”
The sanctions waiver—known as a general license—permitted Chevron to produce and export Venezuelan crude oil but explicitly barred payments of taxes, royalties, or dividends to the Venezuelan government or any state-controlled entity. However, sources familiar with the matter revealed that an undisclosed addendum to the waiver allowed Chevron to make certain payments necessary to sustain its business operations.
Chevron is the only major U.S. oil company still operating in Venezuela after nationalization policies under late President Hugo Chávez in the 2000s forced many foreign producers to exit or seek compensation. The company’s operations were halted under Trump-era sanctions but resumed in 2022 when Biden officials brokered a deal allowing Chevron to return in exchange for Maduro agreeing to democratic elections.
According to Bloomberg, Chevron’s dealings in Venezuela have come under intense scrutiny from former President Trump in recent weeks. Earlier this month, he issued a 30-day deadline for Chevron to end its joint venture with Venezuela’s state oil company, PDVSA.
By Bitumenmag
Oil, Crude, Bitumen
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