The new OFAC license for Chevron in Venezuela authorizes in-kind payments for taxes and royalties. Photo: PDVSA.
Guacamaya, 31 de julio de 2025. U.S. energy corporation Chevron will pay the Venezuelan government in oil instead of bolivars or other currencies, according to sources consulted by Bloomberg.
On July 25, reports emerged that Chevron would receive a new private license to operate in the South American country despite sectoral sanctions imposed by the U.S. Treasury Department’s Office of Foreign Assets Control (OFAC).
The new license does not authorize monetary payments, so PDVSA and the North American corporation reportedly reached an agreement for in-kind payments—specifically, in crude oil. These payments would primarily cover taxes and royalties. The U.S. State Department has stated that this scheme would cut off revenue to Nicolás Maduro’s government, but Venezuela could simply sell its share in other markets in exchange for foreign currency or cryptocurrencies, such as the stablecoin USDT.
The same sources indicated that other oil companies in the country are also paying the Venezuelan state in crude due to sanctions and that Chevron’s agreement would follow similar terms.
Paradoxically, according to sources consulted by Guacamaya, it was the Venezuelan government itself that proposed payments in crude, diluents, and other supplies for the oil industry. This approach would allow it to secure better profits than under General License 41, which expired in May and only permitted tax and royalty payments in bolivars.
Venezuela’s oil production has remained stable despite OFAC’s brief cancellation of licenses earlier this year. However, while the licenses were in effect, they drove gradual but steady growth: Venezuela went from producing 690,000 barrels per day (bpd) in January 2023 to 910,000 bpd in June of this year, while exports rose from 560,000 bpd to 840,000 bpd in the same period.
The foreign exchange market, however, will feel a significant difference compared to the previous licensing period. Under the Biden administration’s framework, Western oil companies were forced to buy bolivars from private banks, contributing 40% of the local market.
Under OFAC’s new structure, the Venezuelan government will once again have a monopoly over the foreign exchange market. This likely means the continuation of the currency allocation hierarchy enforced by Vice President Delcy Rodríguez.
