Chevron Corporation, a major U.S.-based oil company, has been told to send back almost 1 million barrels of oil to Venezuela. This unexpected order comes just as Chevron was trying to secure as much oil as possible before shutting down its operations in the country. The shutdown is due to a deadline from the United States government, which has ordered Chevron to stop doing business in Venezuela by May 27.
Venezuela’s state-owned oil company, Petroleos de Venezuela S.A. (PDVSA), told Chevron to return two tankers — Carina Voyager and Dubai Attraction. These large ships were sitting near the coast of Venezuela, filled with oil and waiting to sail away. But instead of leaving, they’ve now been sent back to port to unload all their oil.
According to Venezuela’s government, Chevron couldn’t pay for the oil because of restrictions linked to U.S. sanctions. These sanctions make it nearly impossible for American companies to do financial transactions with Venezuela. The government said the oil that Chevron returned will now be sold to other buyers in the international market.
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What Was on the Ships?
The Carina Voyager was carrying about 500,000 barrels of a type of oil called Merey 16. This oil is Venezuela’s most popular export and is often blended with lighter oils to make fuel. The other ship, the Dubai Attraction, had about 350,000 barrels of Boscan crude, a much heavier type of oil that’s mostly used to make asphalt for roads.
The Carina Voyager had filled up its oil at a terminal in Jose, located in the Anzoategui region. The Dubai Attraction had loaded its cargo in Bajo Grande, which is in the Zulia region of Venezuela. Both ships were fully loaded and ready to sail when the sudden order came to turn around.
This action caught Chevron off guard. The company had already sent four more empty ships to Venezuela, planning to fill them up with oil over the next few days. Now, those plans have been scrapped.
All Oil Shipments Canceled
Sources familiar with the situation say that Chevron has now canceled all its remaining oil pickups from Venezuela for April. That’s about 5 million barrels of crude oil that will no longer be shipped. These sources asked not to be named because they were not allowed to speak publicly about the situation.
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This development marks a major blow to Chevron, which has been working hard to get oil from Venezuela before the May deadline hits. Once the U.S. sanctions are fully in place, Chevron won’t be allowed to do any business in Venezuela, ending a long history of cooperation between the two.
So far, Chevron has not given any public comments on this matter.
The decision to force Chevron to return the oil appears to be part of a broader shift in how the U.S. government is dealing with Venezuela. While the country has been under heavy sanctions for years, recent actions suggest the U.S. is going back to a more aggressive approach. This has left companies like Chevron stuck in the middle, trying to follow U.S. rules while also managing their international business.
For now, the nearly 1 million barrels of oil that Chevron had hoped to take out of Venezuela are back in the hands of PDVSA. The oil giant is left with canceled shipments, full tankers heading nowhere, and a shrinking window to complete any remaining business before the shutdown date arrives.
