Chevron’s Venezuelan oil shipments are facing significant disruption as at least two vessels, chartered by the company, have been stalled. This situation arises from the Venezuelan state oil company PDVSA canceling their export authorizations amid concerns regarding payment due to tightening U.S. sanctions on the country.
As a result, Chevron is now waiting for customs documentation to facilitate the return of its cargoes to port. Originally, the U.S. had issued a license in 2022 allowing Chevron to operate in Venezuela; however, this license was revoked by the Trump administration in March 2023, with a transition period ending on May 27.
PDVSA’s recent actions have effectively shortened this period, complicating matters further for Chevron. In addition to the two vessels that had completed loading, PDVSA has also suspended loading permits for four other Chevron tankers, which began departing Venezuelan waters without cargo.
The Venezuelan government has pointed fingers at the U.S. sanctions for hindering Chevron’s ability to pay for the oil. Vice President Delcy Rodriguez commented on Telegram, stating that, due to what she termed an “economic war” launched by the U.S., Chevron was forced to return crude cargoes to PDVSA, which are now being offered in international markets.
Two chartered vessels, the Dubai Attraction and Carina Voyager, remain loaded but are waiting for the required paperwork for their return. The situation also affects other Chevron vessels, including the Pegasus Star, Ionic Anax, Calypso, and Sea Jaguar, which had their loading schedules suspended.
Chevron, PDVSA, and Valero Energy have yet to publicly comment on this issue, and it remains unclear if new loading schedules will be arranged by PDVSA. Chevron’s joint ventures with PDVSA account for about 25% of Venezuela’s oil production, and in the first quarter, the company exported approximately 250,000 barrels of Venezuelan crude per day to the U.S. after receiving its operating license.
However, the recent decision by Washington to cancel licenses was based on accusations against President Nicolas Maduro for failing to address illegal migration and restore democracy in Venezuela.