Chevron (CVX) to Send First Venezuelan Crude Shipment to US by Late December

A person familiar with the matter says that a license issued by the Biden administration will allow Chevron to ship crude from Venezuela to the US by the end of the year.

According to three people with direct knowledge of the meeting, Tareck El Aissami, the oil minister of Venezuela, met with the head of Chevron in Venezuela to discuss details of three joint ventures the company has with the state oil company. One of the people said the contracts were going to be signed this week.

One of the people said that Chevron will take over operations at an oil upgrading facility where it will process 1 million barrels of crude to be shipped to the US by late December. The company will source its own diluents to mix with the sludgy Venezuela oil and process crude from its own ventures.

Washington granted the company a limited license to restart work in Venezuela. The ability to boost production and sell the oil to the US was given by it. The proceeds will go towards paying down debt.

There is an energy crisis in Venezuela.

He wouldn't say anything about the contracts.

The representatives for Venezuela's oil ministry didn't reply to questions.

2/2 En las próximas horas, firmaremos los contratos para impulsar el desarrollo de las Empresas Mixtas y la producción petrolera; como siempre lo hemos hecho, en los términos establecidos en la Constitución y demás leyes venezolanas. AHORA A PRODUCIR!! pic.twitter.com/H55YKBcEha

— Tareck El Aissami (@TareckPSUV) November 29, 2022

The agreements would boost the development of joint ventures and oil production.

One of the people said that the upgrader would be used to produce Hamaca Blend, a grade of heavy, tar-like crude from the Orinoco belt. Some units of the upgrading facility were being used to produce gasoline.

According to a calculation of company data, production on four oil fields has fallen to 50,000 barrels a day from 160,000 barrels a day last year. One of the people said that the joint ventures could increase production to 200,000 barrels a day by the end of the year.