Chevron sees limited scope for growth in Venezuela oil output - Reuters

Chevron sees limited scope for growth in Venezuela oil output | Reuters

Chevron sees limited scope for growth in Venezuela oil output

Chevron logo is seen in this illustration taken, October 23, 2023. REUTERS/Dado Ruvic/Illustration/File Photo Acquire Licensing Rights

LONDON, Nov 7 (Reuters) - Chevron sees limited scope for growth in Venezuela's oil production after the U.S. granted the OPEC producer limited relief from sanctions last month, an executive from the U.S. major told an industry event on Tuesday.

The Biden administration last month, broadly eased sanctions on Venezuela's oil sector in response to a deal reached between the government and opposition parties for the 2024 election.

A new general license issued by the U.S. Treasury Department authorized the country to produce and export oil to its chosen markets for the next six months without limitation.

"The trick there is it's a six-month licence," Patti Leigh, vice president of crude supply and trading at Chevron, told the Argus European Crude Conference.

"So in the short term, I don't think you're going to see a lot of impact of that licence," she added, adding that the license would need to be extended for capital to flow into the country's oil industry and to see meaningful growth.

Reporting by Robert Harvey, Ahmad Ghaddar and Natalie Grover; editing by Jonathan Oatis

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