US Allows Some Oil Companies to Produce Oil, Gas in Venezuela

Article content(Bloomberg) — The Trump administration issued licenses allowing a handful of Western oil companies to operate in Venezuela, the latest step in a campaign to revive the country’s oil-dependent economy. Sign In or Create an AccountEmail AddressContinueor View more offersArticle contentThe licenses issued by the US Treasury Department on Friday authorizes five companies to engage in oil and gas contracts and transactions with Petróleos de Venezuela SA and its subsidiaries, and limits payments including taxes to a US-controlled account. The companies are BP PLC, Chevron Corp., Eni SpA, Repsol SA and Shell PLC.Article contentWe apologize, but this video has failed to load.Try refreshing your browser, ortap here to see other videos from our team.Article contentArticle contentChevron is already operating in Venezuela under a restricted license but will now be allowed to expand its operations. The other companies previously held licenses that the Trump administration revoked last year as it was seeking to ratchet up pressure on Caracas. Under the new terms, contracts will be governed by the US and reviewed by the State and Energy Departments every 90 days.Article contentTop StoriesGet the latest headlines, breaking news and columns.There was an error, please provide a valid email address.Sign UpBy signing up you consent to receive the above newsletter from Postmedia Network Inc.Thanks for signing up!A welcome email is on its way. If you don't see it, please check your junk folder.The next issue of Top Stories will soon be in your inbox.We encountered an issue signing you up. Please try againInterested in more newsletters? Browse here.Article contentThe list of authorized companies conspicuously excludes some incumbents, such as French-listed Maurel et Prom SA, which is controlled by Indonesia’s state-controlled Pertamina. Maurel et Prom didn’t immediately reply to a request for comment. Article contentThe new license is the latest step by the Trump administration to stimulate Venezuela’s oil industry and revive the local economy following the capture of leader Nicolás Maduro earlier this year. The country’s oil production has fallen by about half since 2017, when Washington first imposed financial sanctions on the country. Article contentOn Thursday, US Energy Secretary Chris Wright toured a project operated by Chevron in Venezuela’s Orinoco oil belt and told reporters that the opportunity for cooperation between the US and the South American nation is “immense.”Article contentArticle contentDespite Venezuela’s abundant oil and gas reserves, most oil companies remain wary so far. Some like ConocoPhillips are still owed money from past nationalizations. ConocoPhillps chief executive Ryan Lance said his priority is to recover money owed, rather than drill new wells.

Exxon Mobil Corp. chief Darren Woods described Venezuela “uninvestible” during a meeting with Trump at the White House, a week after Maduro’s ouster. Chevron said it plans to finance investments with cash from oil sales, rather than commit new money.Article contentEasing ControlsArticle contentVenezuela’s new leader Delcy Rodríguez has followed through with Trump’s plan by promoting reforms to attract investment. The country recently eased government controls, including a long-awaited overhaul of its state-dominated hydrocarbons law, opening the door for private firms to pay lower taxes, market their own production and settle contract disputes through international arbitration. Article contentSince Maduro’s capture, the US has been easing sanctions while keeping a grip on the oil industry. Recently, the Trump administration allowed traders and refiners to buy oil directly from PDVSA, but proceeds must go to US government-controlled bank accounts. The sale of US diluent to the South American country has also been permitted. Article contentTrending Subscriber only. Donald Trump plans to roll back tariffs on steel and aluminium goods Subscriber only Financial Times As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas Ontario issues first permit that opens up old mine tailings for exploration Mining CRA charged taxpayer instalment interest before he received all his GIC income Taxes Trump rebuked as U.S. House votes against some tariffs on Canada Economy Share this article in your social networkCommentsYou must be logged in to join the discussion or read more comments.Create an AccountSign in Join the Conversation Postmedia is committed to maintaining a lively but civil forum for discussion. Please keep comments relevant and respectful. Comments may take up to an hour to appear on the site. You will receive an email if there is a reply to your comment, an update to a thread you follow or if a user you follow comments. Visit our Community Guidelines for more information. Subscriber only. Donald Trump plans to roll back tariffs on steel and aluminium goods Subscriber only Financial Times As U.S. companies return to Venezuela's oilfields — one Canadian driller has a head start Oil & Gas Ontario issues first permit that opens up old mine tailings for exploration Mining CRA charged taxpayer instalment interest before he received all his GIC income Taxes Trump rebuked as U.S. House votes against some tariffs on Canada Economy