The U.S. administration is set to order more companies to stop operating in Venezuela, following Chevron’s directive to cease operations. Companies are given 30 days to comply following waiver revocation, impacting the economy heavily dependent on oil revenue. President Maduro downplayed potential output loss, amidst negotiations on democratic reforms and migration acceptance.
The United States is poised to compel more companies to cease operations in Venezuela, escalating pressure on President Nicolas Maduro. This decision follows the previous directive issued to Chevron Corporation to terminate its activities there. Sources indicate that the administration has notified other firms, including French oil producer Etablissements Maurel & Prom SA, that they will have 30 days to stop operations once their waivers are revoked. The US Treasury could begin this process imminently.
The termination of operations by these firms would significantly impact Venezuela’s struggling economy, further straining Maduro’s position as President Trump seeks negotiations on democratic reforms and increased migration acceptance. Chevron, previously directed to conclude its Venezuelan operations by April 3, is essential for the economy, which relies heavily on oil amidst the decline of its state oil company due to underinvestment.
The Trump administration’s strategy toward Venezuela reflects varying opinions among advisers and officials, leaving room for potential policy shifts that might allow continued operations by oil companies. Foreign entities, such as Spain’s Repsol SA and Italy’s Eni SpA, are also awaiting decisions regarding their operational waivers amid looming sanctions.
Chevron’s joint ventures with Petroleos de Venezuela SA provide a substantial portion of the Maduro regime’s revenue, with estimates suggesting that the absence of Chevron could result in a 7.5 percent contraction in the Venezuelan economy this year. Recent developments included Trump’s adviser, Rick Grenell, engaging directly with Maduro to facilitate the release of US detainees and resume deportation flights, which returned 166 migrants to Venezuela.
Despite these pressures, Maduro downplayed Chevron’s impending exit, asserting that there would be no impact on oil output. He confidently stated that “output will not even fall one liter or barrel.”
In summary, the U.S. administration is intensifying its effort to compel more companies to halt operations in Venezuela, with the potential revocation of waivers affecting firms like Chevron, which plays a crucial role in the Venezuelan economy. This move is intended to amplify pressure on President Maduro amid ongoing discussions about democratic reforms. How this situation unfolds remains to be seen, especially with the administration’s fluctuating stance towards foreign oil operations.
Original Source: www.business-standard.com
