LatAmOil: Chevron treads cautiously in Venezuela amid regulatory shifts

US oil behemoth Chevron is opting for a cautious stance regarding new capital expenditure in Venezuela in light of newly reimposed sanctions, despite being allowed to operate in the country by a separate licence issued in November 2022. CEO Mike Wirth elucidated this approach during the company's quarterly webcast, underscoring a reliance on self-funding through operational cash inflows.

Wirth said during the company's quarterly results webcast that the company remains circumspect about injecting fresh capital into Venezuela. "We're not putting new capital into Venezuela right now. All the spending is really self-funded from the cash from operations," affirmed Wirth in response to inquiries from analysts regarding Chevron's operations in the region.

The recent shift in regulatory dynamics stems from the April US decision not to renew sanctions relief measures, which previously permitted Venezuela to export oil and fuel to specific markets, mandating companies to wrap up their transactions within a 45-day grace period.