US energy firm Chevron has been allowed to drill oil and gas in Venezuela, despite US sanctions on the country.

The licence for Chevon has been extended by the Trump administration for three months in the country that is on the brink of economic and political collapse. With the extension, the licence will expire on 25 October this year.

Chevron is the last major US oil company operating in Venezuela, while other US oil firms, despite an extension to their licences, have suspended operations due to the ongoing uncertainty in Venezuela.

“Our operations in Venezuela continue in compliance with all applicable laws and regulations,” said Chevron spokesman Ray Fohr in a release to Reuters.

In January, Chevron was given licence for six months to continue its operations. However, the administration levied sanctions on PDVSA, Venezuela’s state-run oil company.

PDVSA has four joint ventures with Chevron and they produce the equivalent of about 200,000 barrels per day of oil.

US government extends Chevron license to operate in Venezuela. Image by DavidRockDesign from Pixabay.

Chevron’s recent production proportionate to its stake in the joint venture was nearly 40,000 bpd.

Operating for about 100 years in Venezuela, the US-based oil company currently employs 8,000 people in the country.

Some US officials see Chevron’s exit from the country as an important step in the stepping up economic pressure to oust Venezuelan President Nicolás Maduro.

Other sections feel that the company’s departure could give more room for Chinese and Russian operators to expand their role in the country.

  Oil and gas industry news