Trump Revokes Chevron’s Venezuela License Over Electoral Disputes

U.S. President Donald Trump announced on Truth Social that he is revoking a license granted to Chevron (NYSE:CVX) in November 2022, citing Venezuela’s failure to meet electoral conditions and migrant return agreements. The decision reverses the Biden administration’s oil transaction agreement, which allowed Chevron to operate in Venezuela and export crude.

Venezuelan Vice President Delcy Rodriguez condemned the move, calling it a "damaging and inexplicable decision." Chevron, which exports about 240,000 barrels per day from Venezuela—over a quarter of the country's oil output—is now barred from shipping crude to U.S. refineries. Without the license, Venezuela's state oil company, PDVSA, will struggle to find buyers due to U.S. sanctions.

Trump had previously signaled his intent to cut off Venezuelan oil, reaffirming his "maximum pressure" policy against President Nicolas Maduro. Biden had reinstated broad oil sanctions in April, citing Maduro’s failure to ensure fair elections, but had left Chevron’s license intact. Revenue from Chevron’s operations had provided Venezuela with an estimated $2.1 billion to $3.2 billion annually, supporting its economy.

Trump’s decision follows a recent meeting between U.S. envoy Richard Grenell and Maduro, where six American detainees were returned. However, Trump claims Venezuela has not upheld its commitments. Opposition leader Maria Corina Machado praised the move, calling it a victory for democracy.

The license cancellation takes effect March 1, raising uncertainty over crude shipments en route to the U.S. Chevron, which had planned to recover $3 billion in debt from Venezuela, now faces operational disruptions amid a broader corporate restructuring.