Chevron is expected to receive an expanded Venezuela license from the U.S. government this week that could allow for increased production and exports from the South American country, three oil industry sources told Reuters on Wednesday.
The U.S. oil producer is anticipated to be one of several firms to get approvals from President Donald Trump’s administration to do business in Venezuela as oil companies, traders and refiners look for access to the country’s heavy crude, sources said.
U.S.-based Marathon Petroleum, for example, is in discussions with the administration to receive Venezuelan crude for its refineries, according to a separate source familiar with the discussions.
U.S.-based Valero Energy and global traders Mercuria and Glencore have also been in talks for licenses from Washington to do business with Venezuela, industry sources said.
A Chevron spokesperson said in a statement that the company operates in compliance with all laws, regulations and sanctions frameworks. Marathon, Valero, Mercuria and Glencore did not immediately respond to requests for comment.
The U.S. Treasury Department’s Office of Foreign Assets Control did not immediately respond to a request for comment. It does not generally comment on specific licenses or licensing requests.
Reuters reported last week that Chevron was in talks with the U.S. government to expand a key license to operate in Venezuela so it can increase crude exports to its own refineries and sell to other buyers.
Chevron is the only American oil major currently producing and exporting crude from Venezuela, which it does under a restricted authorization from the U.S. government that exempts it from sanctions on the country.
The company’s shares have risen nearly 9% since U.S. forces removed President Nicolas Maduro from power earlier this month and interim President Delcy Rodriguez took office.
Trump has said he wants U.S. oil companies to invest as much as $100 billion to reactivate the OPEC country’s oil industry and boost output.
(Reporting by Marianna Parraga in Houston and Jarrett Renshaw in Washington, with additional reporting by Sheila Dang, Arathy Somasekhar and Tim Gardner; Editing by Nathan Crooks)