Venezuela's oil minister Tareck El Aissami and top representatives of state-run company PDVSA on Friday signed contracts with US oil firm Chevron Corp (CVX.N) with the aim of reviving the nation's oil output and expanding operations, Reuters reported.
The US granted permission for Chevron to start pumping oil in Venezuela last week.
The report stated that US President Joe Biden authorized Chevron to sign a six-month license eyeing talks between the government of Venezuelan President Nicolas Maduro and the Venezuelan opposition ahead of the elections.
But, in light of the recent decision adopted by OPEC+ to cut oil production, defying the White House's demands, it is likely that this move may be owed to energy security concerns.
Contracts signed by Venezuela and US-based Chevron Corp. include the PDVSA-Chevron joint ventures Petroboscan and Petropiar, according to officials.
In this way, Petropiar and Petroboscan are authorized by the license mainly to produce and extract oil, and activities related to maintenance, repair, or service; sell, export, or import to the United States, through Chevron; and purchase and import into Venezuela products associated with the above, including diluents, condensates, oil, or natural gas.
The US has been depleting its own strategic reserves to manage oil prices that were hit hard by US and EU sanctions against Russia and their failed attempt to pressure OPEC+ into increasing production.
In a previous report by the agency, Reuters said the other day, “Chevron is a minority partner in four oil joint ventures in Venezuela with PDVSA, which have produced this year between 60,000 and 100,000 barrels per day (bpd) of crude.”
A formal meeting took place earlier today at PDVSA's Caracas headquarters in the presence of El Aissami, Chevron's President for Venezuela, Javier La Rosa, and PDVSA President, Asdrubal Chavez.
MNA/PR
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