Michael Wirth, Chevron’s chief executive, said the company is unlikely to invest in a drilling campaign that will increase Venezuelan oil production in the next six months. “There is a lot of work to be done,” he said.
Chevron Corp.’s authorization to expand oil production in Venezuela is unlikely to lead the company to add investments in the country in the next six months, said the US company’s chief executive, Michael Wirth.
The administration of President Joe Biden issued a six-month license last week that allows Chevron increase oil production and expand its operations in Venezuela. It restricted any cash payments to Venezuela pending further progress in political talks between President Nicolás Maduro and the opposition integrated in the Unitary Platform.
Washington could gradually relax sanctions on Venezuela and grant more freedomChevron to operate in Venezuela over time, Wirth added in remarks to the Economic Club of New York on Thursday, November 30, reviewed Reuters.
Chevron is the last major US oil company still operating in Venezuela and is owed more than $3 billion in dividends and debt from its joint ventures with state oil company PDVSA.
“It is not likely that we will invest in a drilling campaign that will increase production in the next six months. There is a lot of work to be done… to allow us to move in that direction,” he added. Wirth.
After seeing that the sanctions did not completely stop Venezuelan exports, the Biden administration decided to “loosen some of the sanctions imposed by the Trump administration. The main effect is that it allows some of that Venezuelan oil to flow back into the United States, which will help the North American refining system”, said the CEO of Chevron.
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