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| Photo Credit: Reuters
The United States has revoked several transnational oil and gas companies’ licenses to operate in Venezuela, Caracas said on Sunday, which had been granted despite Washington’s sanctions against the South American country.
US President Donald Trump is seeking to strangle Venezuela economically in order to cripple its leader Nicolas Maduro, and announced a week ago 25 percent tariffs on imports from countries buying Venezuelan oil and gas.
Venezuela did not specify which companies were affected but French oil firm Maurel & Prom (M&P) said on Monday that the special license it had been granted last May had been revoked.
M&P said the US Treasury’s Office of Foreign Assets Control (OFAC) had given it until May 27 to wind down its activities in Venezuela.
“It is M&P’s understanding that this action is part of a broader initiative by OFAC affecting both US and international oil companies operating in Venezuela under similar authorisations, pending a possible agreement between the US and Venezuela as the situation continues to evolve,” it said in a statement.
US energy giant Chevron had its license revoked in February.
The Wall Street Journal reported on Saturday that Washington had ordered Global Oil Terminals, owned by tycoon Harry Sargeant III, to cease operating in Venezuela.
Spanish oil giant Repsol, Italian gas producer Eni and India’s Reliance Industries are also expected to be hit by the US license revocations.
Chevron produces some 220,000 barrels per day (bpd), Repsol around 65,000 and M&P around 20,000, according to experts.
“I want to inform you that we have maintained fluid communication with the transnational oil and gas companies operating in the country, and that they have been notified in recent hours by the US government about the revocation of their licenses,” Venezuelan Vice President Delcy Rodriguez said in a statement on Telegram on Sunday.
“We were prepared for this situation and we are ready to continue honoring contracts with these companies,” she said.
Companies that violate the US oil embargo and other directives could be sanctioned by the United States.
Chevron’s revoked license had been granted by former US president Joe Biden and allowed the company to operate despite sanctions. Other companies had received similar licenses.
Trump, who had initially given Chevron until April 3 to shut down its operations, extended it until May 27.
The United States and many other countries do not recognize last year’s claim of victory by Maduro in elections he is accused of having stolen.
Venezuela’s oil production, which exceeded three million bpd 25 years ago, is about one million bpd today, having fallen to less than 300,000 at its worst.
Published – March 31, 2025 09:53 pm IST
