Biden’s Treasury renews Chevron’s oil license to operate in Venezuela

The US Treasury on Friday renewed Chevron’s operating license Oil production in Venezuelaa country under sanctions by the United States, will likely draw up a broader licensing agreement later in the year.

Previously, the United States acted as The largest oil market in Venezuela But oil activity between the two countries has been limited amid the ongoing political turmoil between Venezuelan President Nicolas Maduro and his opponent Juan Guaido, who is recognized by the United States as the legitimate Venezuelan leader, Reuters reported.

Under the current license, Chevron is allowed to continue maintaining its employees and operating infrastructure as well as payments for third-party bills, local taxes, and utility services.

The license allows Chevron to conduct “transactions and activities necessary for the safety or preservation of assets in Venezuela,” according to the report. The oil company is also able to participate in shareholder meetings and board meetings.

DOW, S&P NAB May Win $115 Oil With Memorial Travel Day: Live Updates

Venezuelan leader Nicolas Madura. (Photo by Mathias Delacroix/Getty Images/Getty Images)

According to the American report Officials want talks between Maduro and Guaido to apply to a coherent governing body before any broader license is issued.

Republicans criticize Biden for draining oil reserves because gas prices are still at a record level

Chevron was previously allowed to trade oil from the South American country, from 2019 through April 2020, but it was a maximum pressure campaign by the former. US President Trump To remove Maduro, he ended the activity.

Jan 31, 2020 SAN JOSE / CA / USA – Chevron gas station in the Southern San Francisco Bay Area (iStock / iStock)

READ  Germany depends on Russian gas, oil and coal: Here's why

Get your FOX business on the go by clicking here

Venezuela’s leaders are expected to soon negotiate free elections and the release of political prisoners, with Mexico hosting the meeting. The positive outcome of these meetings could lead to the restoration of oil transactions Between the United States and Venezuela.

Chevron’s new license extends its existing deal through the end of November.