U.S. considers Chevron’s request to use Venezuelan oil for debt payment

The Biden administration is considering a Chevron request to allow the oil company to accept Venezuelan oil to help recoup the country’s unpaid debt. 

Chevron representatives have held meetings with U.S. diplomats and Venezuelan envoys to discuss trade options, a move the oil company describes as a milestone in their year-long lobbying efforts to operate in Venezuela. 

Venezuela’s state-owned oil company, Petroleos de Venezuela, owes Chevron over 3 billion dollars. The debt is associated with Chevron investments and sales it could not register due to the sanctions imposed on the Latin American country.

“Chevron wants Washington to reinstate trading privileges it enjoyed for a time under former President Donald Trump's administration. The company and other foreign producers were permitted to take and export Venezuelan oil to recoup dividends and debt from joint ventures with state-run oil company PDVSA,” reported Reuters.

Until 2020, Chevron was allowed to trade 1 to 2 million barrels per month of Venezuelan crude. However, President Trump’s sanctions on Venezuela halted the trade. 

"The Biden administration has more and more incentives to ease sanctions on Venezuela after Trump's failed strategy," said one of the people familiar with the meetings. "One of the most important ones is to bring something to the negotiation table." 

Trading with Venezuela would allow Chevron to recover some of the money. However, no decision has been reached, said people close to the discussion.