Chevron Granted License to Resume Oil Production in Venezuela

SEATTLE (Oil Monster): Chevron Corporation has been granted license by the US Office of Foreign Assets Control (OFAC) to resume oil production in Venezuela. It must be noted that sanctions imposed by the U.S. had halted all drilling activities in the country for almost three years.

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The company announced that it has received a six-month license from OFAC, which allows it to produce crude oil and other petroleum products from its Venezuelan projects. The company cannot perform any new drilling, but will be able to undertake repairs and maintenance activities at its existing oilfields. The company will be allowed to resume crude exports, with the condition that all exports must be to the U.S. Also, Chevron can import feedstocks, that too from the U.S.

The license allows Chevron to commercialize the oil produced by it from its joint venture assets in Venezuela. The decision will help to bring added transparency to the Venezuelan oil sector, said Chevron representative.

The Venezuelan oil production, which had totalled around 3.0 million barrels a day, had collapsed to nearly 679,000 barrels a day this year. The license is expected to do little towards alleviation of the ongoing energy crisis.