CARACAS — U.S. oil giant Chevron has officially terminated its production, service, and procurement contracts in Venezuela following the revocation of a key U.S. operating license in March 2025 by the Trump administration. Despite halting most operations, the company will maintain a limited presence in the country under a newly restricted U.S. government authorization.
The license withdrawal is part of Washington’s renewed sanctions policy against the regime of Venezuelan President Nicolás Maduro, aimed at curbing any financial benefit the Venezuelan government might derive from American corporate activity.
Under the new restrictions, Chevron is prohibited from producing or exporting oil and is barred from expanding its operations. As a result, the company has transferred operational control of its joint ventures to Venezuela’s state-run oil firm PdVSA.
PdVSA Moves to Operate Independently
PdVSA, which previously partnered with Chevron on several key oil fields producing up to 290,000 barrels per day, has stated it does not require U.S. authorization to continue its operations. The company has indicated its intent to maintain and independently manage the affected oil fields.
While Chevron is barred from conducting new oil transactions, it retains its assets and personnel in Venezuela. According to sources familiar with the matter, Chevron executives have recently held meetings with Venezuelan officials to clarify operational parameters under the new restrictions.
Strained U.S.-Venezuela Relations
The decision marks another chapter in the increasingly strained relationship between the U.S. and Venezuela. President Donald Trump has accused the Maduro government of failing to meet reform commitments and contributing to regional migration pressure. Maduro, in turn, has condemned U.S. sanctions as “economic warfare.”
The developments around Chevron illustrate the complex balancing act faced by multinational companies operating under evolving geopolitical and sanctions regimes, especially in resource-rich but politically unstable environments like Venezuela.
