Chevron Celebrates Big Victory in Fight With Exxon
Exxon, which operates and owns 45% of Guyana's offshore Stabroek Block, claimed it had a right of first refusal over the disposition of Hess's 30% stake. Acquiring Hess and its interest in Guyana significantly increases the quality of Chevron's oil assets beyond the Permian Basin of Texas and New Mexico, narrowing the gap with Exxon. 'This creates a premier international and oil and gas company,' declared Chevron Chief Executive Officer Mike Wirth. Meanwhile, some hedge funds are really cashing in on the deal.
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Yahoo
a few seconds ago
- Yahoo
US mulls limited authorizations for oil firms in Venezuela, sources say
By Marianna Parraga, Matt Spetalnick and Timothy Gardner HOUSTON/WASHINGTON (Reuters) -U.S. President Donald Trump's administration is preparing to grant new authorizations to key partners of Venezuela's state-run oil company PDVSA, starting with Chevron, which would allow them to operate with limitations in the sanctioned OPEC nation, four sources close to the matter said on Thursday. If granted, the authorizations to the U.S. oil major, and possibly also to PDVSA's European partners, would mark a policy shift from a pressure strategy Washington adopted earlier this year on Venezuela's energy industry, which has been under U.S. sanctions since 2019. A senior State Department official said in a statement they could not speak about any specific licenses to PDVSA's partners, but added the U.S. would not allow President Nicolas Maduro's government to profit from the sale of oil. The U.S. might now allow the energy companies to pay oilfield contractors and make necessary imports to secure operational continuity, two of the sources said. "Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the U.S. government, including in Venezuela," a company spokesperson said. Though Venezuela and the U.S. conducted a prisoner swap this month, relations between the two countries have been tense for years, and the Trump administration has publicly supported opposition leaders who say their candidate won last year's election, not Maduro. Trump in February announced the cancellation of a handful of energy licenses in Venezuela, including Chevron's, and gave until late May to wind down all transactions. The U.S. State Department, which in May blocked a move by special presidential envoy Richard Grenell to extend the licenses, is this time imposing conditions to any authorization modifications, so no cash reaches Maduro's coffers, the two sources added. But Secretary of State Marco Rubio could still decide to ban the move at the last minute or modify the scope of the new authorizations. It was not immediately clear if the terms of the license that could be granted to Chevron would be reproduced for other foreign companies in Venezuela, including Italy's Eni and Spain Repsol, which have been asking the U.S. to allow them to swap fuel supplies for Venezuelan oil. The U.S. Treasury Department's Office of Foreign Assets Control did not immediately respond to a request for comment. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Miami Herald
2 minutes ago
- Miami Herald
Trump quietly renews Chevron's license in Venezuela, marking shift in U.S. policy
In a marked shift in U.S. policy toward Venezuela, the Trump administration has quietly approved a new license allowing oil giant Chevron to restart its operations in the South American nation, according to sources with direct knowledge of the negotiations. The decision this week represents a departure from earlier hard-line measures and suggests a recalibration aimed at balancing energy interests with ongoing foreign policy challenges involving the Nicolás Maduro regime. The new arrangement, described by sources as a 'specific license' rather than a general one, allows Chevron to resume more regular activity with Venezuela's state oil company, PDVSA. Under the framework, Chevron will reportedly pay the Maduro regime in barrels of oil rather than in cash — a shift that may give Caracas some latitude to commercialize its resources amid continued international sanctions. Sources say that one significant distinction between a specific license and a general one is that the former can be issued privately while the latter is granted is such a way that it is there for the public to see. 'They made it a specific license instead of a general license like the last one,' said a person briefed on the talks, speaking on condition of anonymity. 'Negotiations were held in Caracas yesterday negotiating some changes to the contract with PDVSA.' Asked about the new license, the State Department said it was only issued for Chevron's maintenance purposes and to create the conditions for the regime to repay the huge debt that it owes the Texas-based oil company, but that it would not aim to provide Maduro any type of financial relief. 'While we cannot speak to any specific licenses, the U.S. government will not allow the Maduro regime to profit from the sale of oil,' the State Department told the Miami Herald in an email. Experts, however, said it was hard to see how the Caracas regime would not benefit financially under the new arrangement. Venezuela's debt to Chevron had been estimated in around $3 billion before the amount was reduced following the Biden administration's decision to grant the Texan oil company a license to operate in the country. That license was revoked by the Trump administration earlier this year in a move that took effect in May and that significantly disrupted the finances of the socialist regime. Chevron was responsible for roughly a quarter of Venezuela's oil output, which earlier this year stood around 900,000 barrels per day. Other international energy companies—Spain's Repsol, Italy's Eni, France's Maurel & Prom, and India's Reliance Industries—were also affected by the U.S. restrictions. Collectively, those firms accounted for another 230,000 barrels per day of production. Chevron and the other companies have played a central role in Venezuela's efforts to recover from the near-collapse of its oil industry, which once produced 3.2 million barrels per day before declining to just 400,000 barrels per day in 2020. Venezuela has the largest proven oil reserves in the world, just ahead of Saudi Arabia. Estimates from industry analysts prior to the license suspensions suggested that foreign companies were providing the Maduro government with an average of $700 million to $800 million per month. While official U.S. policy continues to call for democratic reforms in Venezuela, the quiet reauthorization of Chevron's operations indicates a more pragmatic approach in dealings with Caracas. Sources say U.S. officials have engaged in direct negotiations with high-ranking Venezuelan figures, including National Assembly President Jorge Rodríguez. Back channel talks reportedly remain active, involving U.S. diplomats based in Bogotá and senior Venezuelan officials. These conversations have included proposals to restore diplomatic presence by reopening embassies in Washington and Caracas, although no official announcements have been made. The policy shift also reflects evolving dynamics within the Trump administration. Secretary of State Marco Rubio, a long-time critic of Maduro, is now seen as playing a central role in shaping the administration's Venezuela strategy, while former special envoy Richard Grenell appears to have taken a back seat. 'The State Department or National Security Council is calling the shots now,' said the source, who asked to remain anonymous in order to speak freely. While Rubio has historically supported a tough stance against authoritarian governments in the region, his involvement in the Chevron licensing process suggests that broader U.S. strategic interests—particularly energy security—are now taking precedence. Industry observers note that despite efforts to keep the new license quiet, public disclosure may be inevitable as Chevron's oil begins to reenter Gulf Coast refineries. 'You can't keep it under wraps too long,' the source said. 'Eventually, the oil is going to look for passage through the Gulf to refineries in the U.S.' Chevron has operated in Venezuela for nearly a century and was the last major American energy firm to maintain a presence in the country amid sweeping sanctions. Its continued presence has long served as an indicator of U.S. policy direction. While the license renewal may open the door for other companies to explore similar arrangements, it also raises questions among Venezuelan opposition leaders and human rights groups concerned that any form of normalization with Maduro could weaken efforts to restore democratic governance. For now, the resumption of Chevron's operations marks a potentially significant turning point in U.S.-Venezuela relations — one that could reshape diplomatic, economic and political dynamics in the region.
Yahoo
an hour ago
- Yahoo
Chevron tells Hess staff to focus on safety as they await job updates
By Sheila Dang HOUSTON (Reuters) -Chevron leaders told Hess employees to stay focused on safe operations and that they will hear next week if they will continue to have jobs following the oil producer's acquisition, according to two Hess employees who spoke with Reuters. Chevron, the second-largest U.S. oil producer, closed its $55 billion acquisition of Hess on Friday after prevailing in a landmark legal fight against Exxon Mobil that delayed the closing by over a year. The deal was critical to Chevron CEO Mike Wirth's strategy to improve the business as it sought to cut costs and faced investor concerns about future growth prospects. The company will lay off 575 Hess employees in Houston effective September 26, according to a notice filed with the Texas Workforce Commission, or about 32% of staff based on Hess' headcount at the end of last year. During town hall meetings at Hess' Houston office on Tuesday, Chevron representatives presented a slide that showed safety incidents have risen during volatile periods historically, cautioning them to continue prioritizing safety, according to the two employees, who declined to be named to discuss an internal meeting. Hess staff were told they will be notified next week if they have a full-time position with the company moving forward or a short-term role to help with the transition. "These are difficult decisions which we do not make lightly," a Chevron spokesperson said, adding the company will offer severance and other support. The emphasis on safety comes after Wirth warned Chevron employees earlier this year that the company saw an increase in close calls that could have resulted in serious injuries or fatalities. Chevron and Hess staff were asked not to contact each other until the integration is complete, according to the two Hess employees and an internal Chevron message that Reuters reviewed. "We need them to focus on safe operations and on navigating the complex changes that result from this merger," said the internal Chevron message. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
