Chevron, Venezuelan oil minister discuss new JVs

Chevron's top representative in Venezuela and the country's oil minister Tareck El Aissami have met to discuss new contracts after the US eased sanctions to allow for more oil exports.

"In coming hours we will sign the contracts to push the development of the joint ventures and oil production," El Aissami posted on social media today, along with photos of a meeting Monday with Chevron's Venezuela head Javier La Rosa. "Now let's produce!"

The meeting took place less than three days after the Treasury Department's Office of Foreign Assets Control (OFAC) granted Chevron a new general license and extended another to conduct additional exploration, production and transportation of oil in Venezuela.

"It is a regular practice for Chevron Venezuela leadership to meet with authorized PdV and government representatives in relation to the activities that the company is authorized to undertake in the country," Chevron told Argus. "These meetings are permitted by [OFAC]."

Earlier this year a Chevron representative in Venezuela told Argus that the plan was to produce an additional 200,000 b/d in a 12-month ramp up of production, although this would face significant logistical and equipment challenges.

Chevron has seen its production dwindle from 100,000 b/d before tightened US sanctions in 2019 to around 20,000 b/d currently, with some projects such as PetroBoscan producing nothing since at least August, according to PdV internal reports.

By Carlos Camacho