* Many clients halted Venezuelan oil imports after Trump’s
tariff
imposition
* Companies under US authorizations include European, Asian
firms
* License withdrawals send strong signal of Washington’s
change of
policy
HOUSTON, March 29 (Reuters) – The U.S. government has
notified foreign partners of Venezuela’s state oil company PDVSA
of the imminent cancellation of authorizations that allow them
to export Venezuelan oil and byproducts, sources close to the
decision by President Donald Trump’s administration said on
Saturday.
In recent years, former President Joe Biden’s administration
granted the authorizations to secure Venezuelan oil for
refineries from Spain to India as exceptions to the U.S.
sanction regime on the South American country.
The companies that had received licenses and comfort letters
from Washington include Spain’s Repsol, Italy’s Eni
, France’s Maurel & Prom, India’s Reliance
Industries and U.S. Global Oil Terminals.
Most companies had already suspended imports of Venezuelan
oil following Trump’s imposition this week of secondary tariffs
on buyers of Venezuelan oil and gas, according to sources and
vessel tracking data.
The combination of tariffs and license cancellations to
enforce sanctions is expected to squeeze Venezuela’s oil exports
in the coming months, after they began to decline in March,
according to the data.
In February, Venezuela exported 910,000 barrels per day of
crude and fuel, above January’s 867,000 bpd.
Similar measures by Trump’s first administration in 2020
knocked down Venezuela’s oil output and exports, creating the
need for PDVSA to use intermediaries to allocate cargoes to
China, and leading to a pact with Iran. Those middlemen still do
business with PDVSA.
PDVSA, Repsol, Eni, Maurel & Prom, Reliance and the U.S.
State Department did not immediately reply to requests for
comment. Global Oil could not be reached for comment. The U.S.
Treasury Department declined to comment.
Last month, Trump said a key license to U.S. producer
Chevron to operate in Venezuela and export crude to the
U.S. would be canceled. Days later, the Treasury Department
ordered the company to wind down Venezuelan operations, and last
week extended the deadline to May 27.
The withdrawal of the most important U.S. license for
Venezuela’s energy industry has sent a strong signal of
Washington’s policy change toward Venezuela as Trump’s
administration also curbs migration, with a special focus on
Venezuelans illegally in the U.S.
Following reports by international observers of
irregularities in President Nicolas Maduro’s 2024 reelection,
Trump has ramped up pressure on his government while accusing
him of failing to make progress on electoral reforms and migrant
returns.
It was not immediately clear if all PDVSA partners were
given the same May 27 deadline to wind down operations. The
terms of Chevron’s license termination also have not been
completely clarified.
U.S. Secretary of State Marco Rubio said this month that
foreign oil companies in Venezuela would receive new guidance.
Maduro has criticized the sanctions, saying they amount to
an “economic war.”
(Reporting by Marianna Parraga, additional reporting by and
Stefanie Escenbacher; Editing by David Gregorio and Rod Nickel)
