The Trump administration has revoked a key oil license that had allowed Chevron to continue operating in Venezuela, citing the Maduro regime’s failure to take back illegal migrants at the agreed-upon rate. The decision reverses a major policy from the Biden administration, which had relaxed restrictions on Venezuelan oil despite ongoing sanctions.
President Donald Trump announced the move on Truth Social, stating that his administration was “reversing the concessions” granted under a November 2022 oil transaction agreement as detailed here. While he did not specifically name Chevron, the license in question was the only one issued for oil transactions with Venezuela under Biden.
🚨🇺🇸🇻🇪 | HUGE NEWS FOR VENEZUELA: President Trump is officially reversing Biden’s disastrous oil concessions to the Maduro regime, effective March 1st. This was one of the biggest lifelines keeping the dictatorship afloat, and it’s finally being cut off.
For years, Venezuelans… pic.twitter.com/rzmLaCuenJ
— Rafael E. Struve (@RafaelEStruve) February 26, 2025
The agreement, originally meant to pressure Nicolás Maduro’s government into improving electoral conditions and facilitating the return of Venezuelan nationals from the U.S., was tied to promises of deportation cooperation per this report. However, Trump said Venezuela has not followed through, particularly in taking back gang members from the Tren de Aragua, a violent criminal network that has expanded its presence in the U.S.
Six Americans who were being held hostage in Venezuela and were freed Friday night call President Trump on the plane ride home. pic.twitter.com/OVBPX2ss36
— Defiant L’s (@DefiantLs) February 1, 2025
Financial markets quickly reacted to the news, with Venezuelan oil bonds dropping following Trump’s announcement. The revocation of Chevron’s license means the company must wind down its operations in Venezuela by July, dealing a blow to the country’s struggling economy.
Molotov es tan pero tan imbecil que cree que una acción armada se debe decir en medios y así poder alertar a los malos…..
Hace menos de 24 horas la gente ni se imaginaba que Trump iba a volver a sancionar a Venezuela,así que debemos estar conscientes que Trump es imprescindible https://t.co/w6oqk7M6oC
— GABO⚔️الحلبي (@Abujirji) February 27, 2025
Chevron had approached its role in Venezuela cautiously, avoiding large-scale investments under the Biden-era concession and focusing on maintaining existing infrastructure while recovering outstanding debts. With Trump’s decision, even those limited operations will come to an end.
By shutting down the oil deal, Trump is making it clear that his administration will not reward foreign governments that fail to meet their agreements. The move highlights his broader efforts to hold foreign regimes accountable for failing to comply with U.S. demands on immigration and security.
