Chevron CEO Michael Wirth announced Tuesday that the company was producing about 90,000 barrels per day from its Venezuelan oil joint ventures, nearly double last year’s daily production. However, he also warned that political risks could limit future gains.
A gradual return
The largest U.S. company still present in Venezuela, which is subject to U.S. sanctions, has repatriated some of its employees to the country under Washington’s authorization. Production now stands at about 90,000 barrels per day, up from 50,000 barrels per day before the easing of U.S. sanctions last year. Chevron received a six-month U.S. license last November, automatically renewable each month.
Modest prospects
However, Wirth noted that Chevron’s production in Venezuela could remain modest, depending on the outcome of the upcoming elections. “I expect us to move slowly,” he told analysts at the company’s annual investor day, adding that production was “a little higher than that (90,000 barrels per day) probably today.”
Political uncertainties
Wirth said the change in U.S. government policy is relatively recent and that the company may face challenges when the next election is held in Venezuela. The country’s 2020 parliamentary elections were boycotted by the largest opposition groups and widely considered fraudulent by Western nations. The United States, which has a hostile relationship with Venezuela’s socialist President Nicolas Maduro, has said it wants the country to hold new elections open to all candidates, including members of the opposition.
