President Donald Trump announced Wednesday that the U.S. government will terminate a permit allowing Chevron Corp. to pump and export Venezuelan oil, cutting off a critical revenue stream for President Nicolás Maduro’s administration.
The permit, known as a general license, was issued under President Joe Biden in 2022 and had provided Venezuela with a financial lifeline by enabling oil exports to the United States despite economic sanctions. Trump’s announcement on his social media platform, Truth Social, accused Maduro of failing to meet democratic conditions following the disputed July 2024 presidential election and of delaying efforts to repatriate Venezuelan migrants facing deportation from the U.S.
“We are hereby reversing the concessions that Crooked Joe Biden gave to Nicolás Maduro, of Venezuela, on the oil transaction agreement,” Trump wrote.
The Biden administration initially granted the license after Maduro agreed to negotiations with Venezuela’s political opposition on holding free elections. However, opposition leaders and international observers have since claimed the 2024 vote was neither free nor fair, alleging Maduro retained power despite credible evidence that his opponent won.
The decision to revoke the license comes after months of calls from Venezuela’s opposition to end the agreement, which was originally intended to support democratic restoration. The opposition estimates that Maduro’s government has received approximately $4 billion through oil exports permitted by the deal, which was set for renewal on Saturday.
Over time, the license has become essential for Venezuela’s oil industry, responsible for nearly a quarter of the country’s production.
“We are aware of today’s announcement and are considering its implications,” Chevron spokesman Bill Turenne said in a statement. “Chevron conducts its business in Venezuela in compliance with all laws and regulations, including the sanctions framework provided by the U.S. government.”
Venezuela holds the world’s largest proven oil reserves and was once Latin America’s strongest economy. However, corruption, economic mismanagement, and U.S. sanctions have led to a sharp decline in production.
More than 7.7 million Venezuelans have left the country since 2013 due to economic collapse, with increasing numbers seeking refuge in the U.S. after the COVID-19 pandemic.
The decision to revoke the permit follows a February visit to Caracas by a Trump envoy, during which Venezuela’s government began repatriating deported migrants in hopes of easing tensions with Washington. Venezuelan Vice President Delcy Rodríguez called the U.S. move “harmful and inexplicable,” warning it could worsen migration flows.
The U.S. government does not recognize Maduro as Venezuela’s legitimate president. Under both Biden and Trump, the U.S. has instead recognized retired diplomat Edmundo González as the winner of the disputed July 28 election.
Chevron has operated in Venezuela since the 1920s through joint ventures with state-owned oil company Petroleos de Venezuela S.A. (PDVSA). These ventures produced approximately 200,000 barrels per day in 2019 before U.S. sanctions under Trump’s first administration forced Chevron to scale back operations. When the license was issued in November 2022, output rebounded to 80,000 barrels per day and later surpassed 2019 levels.
Although Chevron is barred from directly paying taxes or royalties to the Venezuelan government, its payments to the joint ventures, majority-owned by PDVSA, have been a key source of revenue for Maduro’s administration.
Venezuelan opposition leader María Corina Machado welcomed the revocation, telling Donald Trump Jr. in a podcast interview that Maduro had used oil revenues “for repression, persecution, and corruption.”
“This is a huge step, and it sends a clear, firm message that Maduro is in huge trouble,” Machado said.
