Since imposing sanctions on Venezuela's energy sector in 2019, the United States has granted individual licenses to certain oil companies, enabling them to export Venezuelan oil to specific destinations. These restrictions were imposed following concerns of electoral irregularities supporting President Nicolas Maduro.
President Donald Trump recently announced the suspension of Chevron Corp's operations in Venezuela, citing a lack of electoral reforms and migrant repatriation progress by Maduro. Despite the licenses, China remains the primary destination for Venezuelan oil.
The US Treasury and State Departments have issued licenses and authorizations related to Venezuela's energy sector in recent years, affecting US importation of Venezuelan crude and operations of companies like Chevron, SLB, Halliburton, Baker Hughes, and Weatherford.
Under the Trump administration's pressure campaign against Maduro, firms, including Rosneft subsidiaries, trading and shipping Venezuelan oil were sanctioned in 2020. Consequently, many partners, such as Chevron, halted Venezuelan oil exports, leading to debt accumulation and reliance on intermediaries for crude allocation to China.
However, President Biden's administration granted Chevron a renewable license to expand operations in Venezuela and recover debt, terminating Trump's previous agreement. Biden's administration also authorized European companies like Repsol, Eni, and Maurel & Prom to operate in Venezuela and swap PDVSA's crude for refined products, aiding fuel scarcity and production challenges in Venezuela.
Indian refiner Reliance Industries sporadically received authorizations to import Venezuelan oil, with the latest valid since 2024, facilitating limited oil flow to India, a significant market for Venezuela pre-sanctions.
Furthermore, Biden's administration issued permits for natural gas projects between Venezuela and Trinidad and Tobago involving companies like Shell, BP, and Trinidad's National Gas Company (NGCTT), with Trinidad striving to secure gas output for domestic use in the upcoming years.