Chevron’s exit from Venezuela prompts Maduro to welcome foreign oil investments amid heightened sanctions from the Trump administration. While encouraging foreign companies to fill the gap left by Chevron, Maduro insists Venezuela’s oil production will continue. Despite challenges, there is reported interest from international investors, though U.S. sanctions complicate the situation significantly.
As Chevron prepares to withdraw from Venezuela, President Nicolás Maduro is extending an invitation to other foreign oil companies to enter the market. This move comes as uncertainty looms regarding the response of the international community, particularly in light of expected increases in sanctions from the Trump administration on Venezuela’s oil sector.
Recently, the Trump administration revoked Chevron’s license, effective until April 3rd, which previously allowed the company to sell Venezuelan oil in the United States. This license, granted by the Biden administration in November 2022, had continued operations despite existing U.S. sanctions on the regime.
Chevron’s operations accounted for approximately 220,000 barrels per day, constituting around 24% of Venezuela’s total output of 900,000 barrels daily. The departure of Chevron presents a challenge for Maduro, who has relied on the company to stabilize Venezuela’s oil production, particularly amid struggles faced by the state-run Petroleos de Venezuela.
In response to potential sanctions, Maduro is emphasizing that Venezuela will persist in oil production without Chevron, while he remains optimistic about attracting other foreign investment. He asserted on national television, ”All of the country’s oil fields will continue to produce, grow, and consolidate their output.
Jorge Rodríguez, a close ally of Maduro, reported that interest from other oil companies is already being expressed. He stated, ”The telephones have not stopped ringing…we are getting calls from all over the world from buyers and oil traders that are desperate to replace Chevron.”
Reports suggest that the Trump administration plans to revoke licenses that allow other international companies to operate in Venezuela, potentially affecting companies such as Repsol, Eni, and Reliance Industries. These companies would risk violating U.S. sanctions if they chose to continue operations post-license revocation.
Venezuela’s oil production drastically decreased from 3.2 million barrels per day during the Chávez administration to nearly 400,000 barrels per day in 2020. This decline underscores the critical role foreign companies play in the country’s oil sector, contributing approximately $700 million to $800 million per month to the Maduro government, necessary for maintaining control and financing corruption.
Alongside this, the U.S. has issued a $25 million bounty for the capture of Maduro and Interior Minister Diosdado Cabello, both facing serious federal charges related to drug trafficking through the Los Soles cartel.
In summary, Maduro’s invitation to foreign oil companies comes as tensions rise due to Chevron’s imminent exit from Venezuela and increased sanctions from the Trump administration. Despite challenges, Maduro remains optimistic, asserting that oil production will continue and interest from international companies persists. The impact of U.S. sanctions could further complicate these prospects, leading to significant implications for Venezuela’s economy and governance.
Original Source: www.miamiherald.com
