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Chevron CEO: Exports of Venezuelan crude oil to resume in this month

The chief executive of U.S. oil company Chevron said that the company expects to resume its exports to the U.S. this month. This follows a limited license issued by the U.S. Treasury Department this week to operate in Venezuela and to do oil swaps.

Mike Wirth, CEO of Chevron, said that exports would begin with "a limited amount" and that he did not expect them to have an impact on the third-quarter results.

Chevron has not exported Venezuelan oil since April when the state-owned PDVSA cancelled cargoes scheduled for its joint venture partner due to payment issues related to U.S. sanctioned against Venezuela.

In March, the U.S. administration of President Donald Trump revoked Chevron's license that was granted under former president Joe Biden. Trump's administration gave Chevron, PDVSA and some of its partners until the end of May to complete transactions.

Washington reinstated licenses last month after a successful prisoner exchange with Venezuela. The U.S. Congress urged the reinstatement of licenses in order to stop Venezuelan barrels going to China.

According to vessel movement data, Chevron had exported around 250,000 barrels of Venezuelan crude per day in the first three months before the licenses were cancelled. This was 29% of Venezuela's total exports.

According to U.S. officials and sources, the new authorization is similar in nature to that of Biden's license but prohibits payment to Venezuelan President Nicolas Maduro’s administration using any currency.

Chevron and the cash-strapped PDVSA have been in negotiations since Washington approved the license.

Sources said that the agreement is likely to include payment of mandatory taxes and royalties to Venezuela, either in kind or by way of oil swaps where Chevron supplies Venezuela with diluents. Sheila Dang (Reporting, Marianna Pararaga and David Gregorio).

(source: Reuters)