By Bradley Olson and Ian Talley 

The Trump administration extended a license to let Chevron Corp. remain in Venezuela until October, siding with officials who argued that the company's absence would put U.S. energy companies at a disadvantage and not significantly advance Washington's goal of ousting Venezuela's president.

The license allowing Chevron and several oilfield services companies to continue operating in the country was set to expire on Saturday, sparking considerable debate within the U.S. administration over whether to extend it, people familiar with the matter said.

Some U.S. officials see a Chevron departure as an essential step in the American-led effort to use economic pressure and isolation to force out Venezuelan President Nicolás Maduro. Others worry that Chevron's departure could lead to a greater role for Chinese and Russian operators in the country, and make it harder for American firms to regain a foothold in the future.

U.S. officials ultimately decided to let Chevron remain in Venezuela, where it has operated for nearly a century, until Oct. 25. Chevron's mandate, which had already been extended six months earlier this year, could later be further extended.

Chevron pushed for license renewal, with spokesman Ray Fohr saying earlier this week that the company was hopeful it would be. "We are a constructive presence in the country," he said in a statement." Chevron on Friday said its Venezuela operations "continue in compliance with all applicable laws and regulations."

Chevron operates a number of projects jointly with Venezuela's state oil company, Petróleos de Venezuela SA, that have managed to maintain production levels even as output has fallen in other areas. For years, the joint operations with Chevron and other companies have been a critical cash lifeline for the country.

Chevron's share of production from Venezuela was 44,000 barrels of oil and gas a day last year, less than 2% of its global output total.

U.S. sanctions have had a punishing effect on Venezuela's oil industry, with production falling by almost half since January to an estimated 690,000 barrels a day, according to the U.S. Energy Information Administration.

Venezuela is in the throes of a humanitarian crisis driven by poor economic management, corruption and U.S. sanctions that have all led to precipitous economic decline and runaway inflation. Violence and shortages of food and medicine have prompted a mass exodus to other countries.

--Rebecca Elliott contributed to this article.

Write to Bradley Olson at Bradley.Olson@wsj.com and Ian Talley at ian.talley@wsj.com

 

(END) Dow Jones Newswires

July 26, 2019 12:58 ET (16:58 GMT)

Copyright (c) 2019 Dow Jones & Company, Inc.
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