Venezuela says U.S. revoked transnational oil, fuel firm licenses

Representational file picture.
| Photograph Credit score: Reuters

The US has revoked a number of transnational oil and fuel firms’ licenses to function in Venezuela, Caracas mentioned on Sunday, which had been granted regardless of Washington’s sanctions towards the South American nation.

US President Donald Trump is looking for to strangle Venezuela economically with a purpose to cripple its chief Nicolas Maduro, and introduced per week in the past 25 p.c tariffs on imports from nations shopping for Venezuelan oil and fuel.

Venezuela didn’t specify which firms have been affected however French oil agency Maurel & Promenade (M&P) mentioned on Monday that the particular license it had been granted final Could had been revoked.

M&P mentioned the US Treasury’s Workplace of Overseas Property Management (OFAC) had given it till Could 27 to wind down its actions in Venezuela.

“It’s M&P’s understanding that this motion is a part of a broader initiative by OFAC affecting each US and worldwide oil firms working in Venezuela underneath related authorisations, pending a attainable settlement between the US and Venezuela because the state of affairs continues to evolve,” it mentioned in a press release.

US vitality large Chevron had its license revoked in February.

The Wall Avenue Journal reported on Saturday that Washington had ordered World Oil Terminals, owned by tycoon Harry Sargeant III, to stop working in Venezuela.

Spanish oil large Repsol, Italian fuel producer Eni and India’s Reliance Industries are additionally anticipated to be hit by the US license revocations.

Chevron produces some 220,000 barrels per day (bpd), Repsol round 65,000 and M&P round 20,000, in keeping with consultants.

“I need to inform you that we’ve maintained fluid communication with the transnational oil and fuel firms working within the nation, and that they’ve been notified in latest hours by the US authorities concerning the revocation of their licenses,” Venezuelan Vice President Delcy Rodriguez mentioned in a press release on Telegram on Sunday.

“We have been ready for this case and we’re able to proceed honoring contracts with these firms,” she mentioned.

Corporations that violate the US oil embargo and different directives may very well be sanctioned by america.

Chevron’s revoked license had been granted by former US president Joe Biden and allowed the corporate to function regardless of sanctions. Different firms had acquired related licenses.

Trump, who had initially given Chevron till April 3 to close down its operations, prolonged it till Could 27.

The US and plenty of different nations don’t acknowledge final yr’s declare of victory by Maduro in elections he’s accused of getting stolen.

Venezuela’s oil manufacturing, which exceeded three million bpd 25 years in the past, is about a million bpd right now, having fallen to lower than 300,000 at its worst.