The U.S. Treasury's Office of Foreign Assets Control has automatically extended Chevron's (CVX, Financial) operating license in Venezuela until April 2025. This comes as Venezuelan oil experts report that the country's crude oil production has rebounded to 1 million barrels per day (bpd) this year, with expectations to reach 2 million bpd by 2025.
Data from the U.S. Energy Information Administration (EIA) shows that in July, Venezuela exported over 300,000 bpd of crude oil to the United States, making it the third-largest oil supplier to the country. Chevron (CVX, Financial) has a joint venture with Venezuela's state-owned oil company, which resumed limited natural resource extraction in November 2022 under a six-month U.S. Treasury license that automatically renews monthly. However, this authorization prevents Venezuela's state oil company from profiting from Chevron's oil sales. Other U.S. sanctions and restrictions on Venezuela remain in effect.
