Chevron Pledges to Work With US to Remain in Venezuela
Chevron Chief Executive Officer Mike Wirth pledged to work closely with the US to remain in Venezuela despite a spiralling crisis which has led rival oil major Total to retreat.
“Our strong intent is to stay on the ground in Venezuela and be part of building a better future for the people of Venezuela,” Mr Wirth said in an interview in Houston on the 11th February. “We’ve got a very close coordination under way with multiple agencies within the US government.”
Chevron is the largest American oil company left in the South American country, which has the world’s biggest oil reserves and where President Nicolas Maduro faces growing pressure from the US and other nations to step aside.
Sanctions issued last month by the Trump administration mean US companies may not deal with any arm of the Venezuelan government or entities controlled by Mr Maduro, whom it considers illegitimate.
But Chevron, and some US oilfield-service companies including Schlumberger, have been granted a licence until the 27th July on their operations within the country.
Mr Wirth declined to comment on whether he sees that as a hard deadline and point in time when Chevron would need to withdraw.
“We work closely with the US government to understand how their policy objectives are being manifest through the sanctions they have issued and to ensure we remain in full compliance with US law,” he said.
Upgrader Partnership
Chevron, the world’s third-largest publicly traded oil company by market value, is a joint-venture partner with state-run Petroleos de Venezuela SA, or PDVSA, in the country’s second-largest upgrader, a key facility which converts tar-like, extra-heavy crude into lighter oils for refineries.
If Chevron withdrew, it could potentially hand the venture to Mr Maduro, which would go against the spirit of the US’s sanctions.
“It’s a fluid environment,” Mr Wirth said, adding that the safety of employees and operations is the priority. “We do contingency planning. That’s based on our assessment of risks anywhere in the world.”
Total plans to pull all its employees from Venezuela as a result of the US sanctions, Chief Executive Officer Patrick Pouyanne said last week. The French company was not on the list of exempt companies published by the Treasury Department on the 1st November.
On the 11th February, Pouyanne said Total may stay in its Venezuela joint venture, with conditions, as it seeks to “understand what exactly” the US sanctions are.
The US and dozens of other countries have backed National Assembly leader Juan Guaido as interim president as they seek to loosen Mr Maduro’s grip on power.
Mr Wirth said Chevron remains “neutral” on who’s in charge.
“It’s a demanding, difficult situation right now, it’s ultimately up to the people of Venezuela to select their political leadership,” he said.
Source: Rigzone