Venezuela sanctions spotlight
Overview
US sanctions on Venezuela’s national oil company PdV, first imposed on 28 January 2019, cast another layer of geopolitical uncertainty onto the international oil market. The sanctions take effect in stages, gradually intensifying their impact on the Opec country’s imports and exports.
For international oil companies, traders and governments around the world, the sanctions rollout and partial unwinding of commercial ties will help to shape near-term market dynamics, with longer-term implications for energy policy and investment.
Follow along with Argus as we deliver the latest news and market analysis on this fast-developing story.
Timeline: Key Venezuela sanctions dates
Related news and analysis
New Trinidad PM to seek access to Venezuelan gas
New Trinidad PM to seek access to Venezuelan gas
Kingston, 29 April (Argus) — Major LNG exporter Trinidad and Tobago's new government wants to open discussions with the administration of US president Donald Trump on access to natural gas fields on the border with Venezuela. United National Congress (UNC) party leader Kamla Persad-Bissessar will be the new prime minister of the Caribbean state of 1.5mn people after the party won Monday's general election, ending 10 years of administration by the People's National Congress (PNC) party of Stuart Young. The UNC won 26 seats in the 41-member assembly. "We will work with the Trump administration to see how the discussions with the Venezuelan government on the cross-border gas fields can be reopened," the UNC's energy spokesman David Lee said. Lee is expected to be appointed the energy minister. "We do not have any closed doors on this matter," Lee said. "We will directly engage the US so it will be confident in working with us on resolving our cross-border issues." Trinidad and Tobago's gas-short economy was set back earlier this month by the Trump government's revocation of licenses granted by the administration of former US president Joe Biden to Trinidad. The waivers exempted certain work to develop two gas fields that straddle the maritime border with Venezuela from US sanctions. Access to the Dragon and Manakin-Cocuina gas fields is "vital" to reversing Trinidad's fall in gas production, Young said. Trinidad has been struggling to recover natural gas flow since November 2017, following a long slide from a peak of 4.3 Bcf/d in 2010. Gas output in 2024 was 2.53 Bcf/d, and the fall in output suppressed LNG, petrochemical and fertilizer production. Trinidad's 2024 LNG production of 16.7mn m³ was down by 4.6pc on 2023, according to the latest energy ministry data. The 11.8mn t/yr Atlantic liquefaction plant in southwestern Trinidad, which is majority owned by Shell and BP, is Trinidad's sole LNG producer. Crude production has also declined, moving from a peak of 144,400 b/d in 2005 to 50,854 b/d in 2024, according to the energy ministry. The decline in crude feedstock contributed to the 2018 shutdown of the state-owned 160,000 b/d Guaracara refinery. Young's administration failed at several attempts to engage foreign investors to reopen the plant. The government last month selected Nigerian privately owned oil and gas company Oando to lease and operate the refinery. But the incoming UNC administration will terminate negotiations with Oando to reopen the refinery and will seek new investors for the plant, the party said. By Canute James Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
US sets 3 April for Chevron's Venezuela exit
US sets 3 April for Chevron's Venezuela exit
Washington, 4 March (Argus) — 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. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Venezuela oil can flow despite sanctions U-turn
Venezuela oil can flow despite sanctions U-turn
Washington, 3 March (Argus) — Venezuelan crude could remain available to most current buyers in the near future even though US president Donald Trump's administration says it is closing exceptions in sanctions against Caracas. 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. US secretary of state Marco Rubio last week separately said via social media that he would recommend terminating all "oil and gas licenses that have shamefully bankrolled the illegitimate regime" of Venezuelan president Nicolas Maduro. Under normal circumstances, such announcements by the US administration include detailed guidance from the Treasury Department's sanctions enforcement arm, the Office of Foreign Assets Control (OFAC). But OFAC in its guidance issued on Sunday, days after Trump's announcement, merely said it was "preparing to take action to wind-down General License 41 and other specific licenses as appropriate." General license 41 is the authorization for Chevron's activities in Venezuela, which was issued on 26 November 2022. "We will issue additional guidance to assist implementation concurrent with any changes to the authorization(s)," OFAC said. The 2022 authorization for Chevron was auto-renewed every month and allowed the company to operate in Venezuela for a six-month period after each renewal. Since Trump noted that he would not renew the license on 1 March, the terms of that license in theory allow Chevron to continue loading cargoes from Venezuela until at least 1 August. Multiple other foreign oil companies and traders hold OFAC licenses with sanctions waivers allowing them to load crude and other energy commodities from PdV. Former president Joe Biden's administration issued such authorizations because their terms do not involve direct payments to PdV. Most cargoes are loaded by operators in exchange for writing down debts owed to them by the Venezuelan government or by PdV. Caracas began to selectively default on its debts to foreign creditors in 2018, and foreign creditors have advanced claims totalling over $60bn. A group of those creditors have succeeded in forcing a sale of PdV-owned US refiner Citgo through a yet-incomplete auction overseen by a US federal court in Delaware. OFAC typically does not disclose sanctions waivers granted to individual operators. Some of them, including Spain's Repsol and Italy's Eni, previously have made public disclosures about holding limited sanctions waivers. It is also not clear if sanctions waivers issued to oil field service companies Halliburton, SLB, Baker Hughes and Weatherford, to enable their continued presence in or a future return to Venezuela, will remain in place. Trinidad and Tobago, which has a sanctions waiver to pursue a project to import Venezuelan gas for a Trinidad-based LNG project, said last week it "will do all in its power" to preserve cross-border oil and gas production agreements. By Haik Gugarats Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
End of waiver endangers Venezuela's 1mn b/d aim
End of waiver endangers Venezuela's 1mn b/d aim
Caracas, 27 February (Argus) — Venezuela has no plan for compensating for a production decline expected after Chevron's waiver that allows it to export crude runs out under the order of US president Donald Trump. Chevron had been exporting about 200,000 b/d to the US and importing condensate needed to dilute Venezuela's extra-heavy crude. This helped to push Venezuela's reported figure including liquids and condensates to 1.035mn b/d in January, although Argus estimates crude-only production at closer to 840,000 b/d. But the waiver that allowed Chevron to make investments there directed at exports to the US only will not be renewed on 1 March , Trump said on Wednesday, casting his decision as retaliation for Venezuela for not receiving enough migrants deported from the US. Chevron likely will have at least until August to wind down its operations in Venezuela, based on the terms of the license, but the US has not revealed details of the process. There are few immediate solutions to replace that support, government officials and sources at oil companies said. Venezuelan president Nicolas Maduro downplayed the change, saying no "threat" will hurt "the will of the Venezuelan people to advance towards their independence, towards their freedom and towards their maximum happiness". Maduro threatened to jail any opposition politicians who have encouraged the US to remove the waiver as a way to pressure him out of office. Without Chevron investing in the joint-venture projects with state-owned PdV, it will be difficult for Venezuela to recover output elsewhere. "Maduro was caught by surprise," a political analyst in Caracas who asked not to be named said. "In Chavista circles [close to Maduro] the chatter was centered around normalization, Trump getting closer to [Russian president Vladimir] Putin, all that good stuff. Now this. They don't have a plan." Oil interrupted PdV and partners including Chevron, Eni and Repsol produced 1.051mn bl on 5 February, the highest level since 2018 and slightly higher than the January monthly average of 1.035mn b/d, according to the latest PdV production report seen by Argus. The FPO or Faja division was producing 601,800 b/d that day; while Occidente (Zulia) added 281,500 b/d and Oriente,149,400 b/d. Smaller producing areas include Los Llanos, with 11,900 b/d; offshore division Costa Afuera with 2,000 b/d and PdV Gas with 4,600 b/d. That production figure includes at least 35,000 b/d of condensate imported by Chevron. Venezuela may import as much as 165,000 b/d of condensate and lighter crude used to transport and upgrade Orinoco extra heavy crude, or 16pc of total reported production, Venezuelan oil economist Rafael Quiroz estimates. By Carlos Camacho Send comments and request more information at feedback@argusmedia.com Copyright © 2025. Argus Media group . All rights reserved.
Map: Primary Venezuelan oil assets
Explore our related products
