The Trump administration has canceled permits and waivers that permitted Western energy companies to operate in Venezuela, according to three sources familiar with the matter. This action further distances Venezuelan President Nicolas Maduro from the global oil market.
The decision affects several firms, including the U.S. oil company Global Oil Terminals, which is headed by energy entrepreneur Harry Sargeant III.
Other companies impacted include Spain’s Repsol and France’s Maurel et Prom, both of which are required to cease operations in Venezuela by May 27, according to the sources.
Additionally, the decision also affects licenses granted to Venezuelan gas companies that have agreements with the state oil company, PDVSA, as noted by one of the sources.
Previously, the U.S. Treasury Department had issued various permits to international oil and gas companies, including licenses, waivers, or letters of comfort, enabling them to engage in operations in Venezuela, such as exporting oil from PDVSA, despite existing sanctions.
Global Oil Terminals, led by Sargeant, is also required to halt financial dealings with PDVSA by April 2 and settle any outstanding debts related to asphalt oil purchases. The Wall Street Journal reported on Friday that Sargeant’s oil-trading firm has been instructed to exit Venezuela, referencing a letter from the Treasury.
Recently, the Trump administration set a May 27 deadline for Chevron to conclude its operations in Venezuela, aiming to exert pressure on Maduro’s authoritarian regime to implement democratic reforms and facilitate the return of Venezuelans who have migrated to the U.S.
Sargeant had previously secured a two-year waiver in May of the previous year, which allowed Global Oil Terminals to buy and transport asphalt to the U.S. and the Caribbean.
The U.S. Treasury Department did not provide comments, and inquiries to the White House, National Security Council, and State Department went unanswered.
SOURCE: Bloomberg News