Chevron expects limited oil flows to resume from Venezuela to the US this month after the administration of President Donald Trump reversed course on an earlier decision to cancel its license to operate in the South American nation.
"Since our license changed in May, we've been engaged with the US government, working closely with the administration to ensure our compliance with our country's policies towards Venezuela," chief executive officer Mike Wirth told analysts Friday after reporting second quarter results. "This month, it looks like there will be a limited amount of oil that will begin flowing to the US from the Venezuela operations that we have an interest in, consistent with US sanctions policy."
The Trump administration withdrew Chevron's authorization to lift Venezuelan cargoes, effective 27 May. But the administration subsequently planned to issue a private license to Chevron substantially on the same terms as before — meaning the US major can take its share of the Venezuela joint venture output and import it into the US, a US energy industry source said last week.
While the expected flows will hardly have a material impact on third quarter results, they will help at the margin to help satisfy some of the debt owed by Venezuela, according to Wirth. "Over time, we hope to continue recovering that," he said.
Venezuelan crude is sought after by US Gulf refiners that were built to process heavy grades. "It serves as a reliable source of supply for the American economy," Wirth added.
