Chevron's CEO Seeks Extension to Wind Down Operations in Venezuela

Core Viewpoint - Chevron Corporation (CVX) is actively lobbying for an extension to wind down its operations in Venezuela, following the revocation of its license by President Trump, amid geopolitical tensions and U.S. sanctions [1][4][13] Group 1: Chevron's Operations in Venezuela - CVX has been a significant player in Venezuela's oil industry, accounting for approximately 25% of the country's total oil production and about a third of its oil exports [9] - The company has joint ventures with Venezuela's state-owned oil company, Petróleos de Venezuela (PDVSA), and its operations are crucial for maintaining some financial stability in the country [10][12] - Critics argue that CVX's presence supports Nicolás Maduro's regime, while others believe that a withdrawal would worsen the economic crisis and increase instability and migration [2][5] Group 2: Lobbying Efforts and Political Dynamics - CEO Mike Wirth has engaged in extensive lobbying efforts, meeting with high-ranking officials, including Secretary of State Marco Rubio and Treasury Secretary Scott Bessent, to secure more time for CVX's exit [3][8] - Wirth's discussions emphasize the strategic importance of CVX's continued presence in Venezuela, warning that a sudden departure could allow U.S. adversaries like China to expand their influence [7][12] - Rubio, a critic of the Maduro regime, insists that CVX should comply with the administration's deadline, reflecting the broader policy direction of the Trump administration [6][8] Group 3: Economic Implications of Withdrawal - Chevron has warned that a rapid exit could destabilize Venezuela's oil sector, leading to increased unemployment and exacerbating the migration crisis [5][12] - The potential exit of CVX could also impact other international players in Venezuela's oil sector, including European companies like Repsol, Shell, and BP, which are interconnected with CVX's activities [11] - Management has indicated that CVX intends to comply with U.S. sanctions while gradually handing over operations to PDVSA to minimize disruption [12][13]