Chevron Contractors Are Still Operating In Venezuela Despite Trump Admin Ultimatum

Chevron contractors in Venezuela are still operating despite the hard deadline given by the Trump administration to the U.S. company to cease all activities in the South American country by early April.

Concretely, Bloomberg reported that local service companies working for three of Chevron's joint ventures with state-run oil company PDVSA have not slowed down their work. The company hires local work to maintain wells, supply power generators and operate small drills and specialized equipment. They have not received guidance to move toward that direction, people with knowledge of the matter told Bloomberg.

The outlet added that the situation illustrates how hard it will be for Chevron to comply with the deadline given by the Trump administration, April 3, which cut short a six month wind-down period. The company is "aware of the President's directive and will abide by any direction given by the U.S. Treasury Department to implement that directive," a spokesperson said in an email.

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 through fraudulent ways.

Trump claimed that Maduro had not adhered to promised electoral reforms and had failed to repatriate Venezuelan migrants in the U.S. at the expected pace.

"We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement, dated November 26, 2022, and also having to do with Electoral conditions within Venezuela, which have not been met by the Maduro regime," Trump wrote. "Additionally, the regime has not been transporting the violent criminals that they sent into our Country (the Good Ole' U.S.A.) back to Venezuela at the rapid pace that they had agreed to."

Maduro said the decision "affected" deportation flights from the U.S. to Venezuela, seen as a gesture of good will by the authoritarian government, usually reluctant to take back nationals. However, Caracas agreed to resume the flights on Thursday, said special envoy Richard Grenell.

The Trump administration is set to expand its economic offensive against the country, pressuring more companies to cease their operations in the South American country.

Bloomberg reported last week that officials have anticipated several companies about upcoming revocations of their licenses, telling them they will have 30 days to end operations after the notification. French oil producer Etablissements Maurel & Prom SA and Spanish oil giant Repsol are among them.