U.S. could issue general license for oil companies to produce in Venezuela this week, source says

The Trump administration could issue a general license as soon as this week for companies to produce oil and gas in Venezuela, a person familiar with the plan told CNBC on Tuesday.

Chevron is the only U.S. company currently allowed to pump oil in Venezuela under a special license issued by the Treasury Department. Chevron has several joint ventures with state oil company Petróleos de Venezuela (PDVSA).

President Donald Trump is pressuring the oil industry to invest at least $100 billion to repair Venezuela’s energy industry after the U.S. captured former President Nicolás Maduro in raid on Jan. 3.

“The President’s team is working around the clock to ensure oil companies are able to make investments in Venezuela’s oil infrastructure. Stay tuned,” White House spokeswoman Taylor Rogers said in a statement. Bloomberg first reported the news.

Last week, the Treasury Department issued a general license that allowed U.S. companies to buy, sell, transport and refine Venezuelan crude oil among other activities. But that license did not include upstream production. Companies were previously barred from these activities under U.S. sanctions.

The Venezuelan government last week also passed reforms to ease state control of its oil industry and give more autonomy to private companies.

The oil industry’s response to investing in Venezuela has been mixed. ExxonMobil CEO Darren Woods told Trump at the White House on Jan. 9 that the country needs big reforms and is “uninvestable” under its current system. Exxon has had its assets seized twice by the government in Caracas.

Private wildcatters and smaller shale oil companies have shown more enthusiasm about the potential opportunity in the South American nation.

Chevron CEO Mike Wirth told CNBC last week that it can ramp up production in Venezuela by 50% in the next 18 to 24 months with approvals from the U.S. It currently produces about 250,000 barrels per day in the South American nation.

Venezuela is a founding member of OPEC and is believed to have the largest crude oil reserves in the world.