Chevron, European Firms May Increase Oil Production in Venezuela if Possible - Source

HOUSTON (Sputnik) - Chevron and other European energy firms may increase oil production in Venezuela if conditions allow it, a person with knowledge of the industry told Sputnik.

"Chevron and the European companies would likely increase production further if conditions allow it," the source said on Wednesday.

Chevron and its joint ventures with PDVSA currently produce up to 100,000 barrels per day, but with additional investment and time it could reach a capacity of 300,000 barrels per day, according to the source.

Chevron, European energy companies ENI and Repsol, and other joint ventures produced 500,000 barrels a day before US sanctions were placed on Venezuela in 2019, which has discouraged investment in the country's oil sector, which has discouraged investment in the country's oil sector.

Last November, the US Treasury Department provided a new license that allows Chevron to extract oil in Venezuela for six months through its joint venture partners PDVSA. However, this license did not expand operations or allow new US investment in Venezuela's oil sector.

The United States granted the new license after the Venezuelan government and the opposition resumed talks in Mexico City and came to an agreement on addressing the humanitarian crisis in the country, including an agreement on the continuation of talks focused on elections to be held in 2024.

According to US officials, Venezuela-related sanctions and restrictions imposed by the United States still remain in place and this decision should not be interpreted as a permissive environment on sanctions.