Trump Admin Again Cedes To Chevron, Extends License To Operate In Venezuela For Two More Months: Report

The Trump administration is set to extend Chevron's license to operate in Venezuela for two additional months, Bloomberg reported on Tuesday.

The decision comes on the same day as Trump envoy Richard Grenell travels to Antigua to meet with members of Nicolas Maduro's authoritarian government, the outlet added, citing an anonymous source.

The administration had initially imposed an April 3 deadline, but extended it for 30 days in late March. The current deadline is May 27.

Chevron ramped up production in the South American country over the past years, now representing about a fifth of its overall output. Its activities have helped prop up Venezuela's battered economy. Critics have argued that the company's operations are providing a lifeline to an authoritarian regime that has encroached to power.

In the meantime, the Trump administration also ordered the few other energy firms in the country, including Spain's Repsol and France's Maurel & Prom, to cease operating. It also announced 25% tariffs to countries buying Venezuelan oil.

However, Reuters reported in May that traders have rebranded over $1 billion worth of Venezuelan oil exports as Brazilian to circumvent the sanctions.

Citing two tanker tracking firms, documents and traders, the outlet said the move helps buyers cut logistical costs as well. Independent refiners in China are the main buyers of the oil and use Malaysia as a hub to receive the product. However, rebranding the oil allows the ships to travel directly to China, shortening the trip.

It is one of the many ways in which the South American country seeks to evade sanctions. Bloomberg reported in March that despite renewed measures shipments were expected to hit its highest level since June 2023.

The outlet had already anticipated Beijing planned to import Venezuelan crude through intermediary firms that use concealed shipping methods, such as spoofing vessel locations and falsifying documents, to avoid detection.

Unless Beijing explicitly directs refiners to halt imports, Chinese buyers, particularly independent refiners known as "teapots," were always expected to find alternative ways to procure the crude. Reuters also noted that a longstanding oil-for-debt agreement between China and Venezuela remains active.