The Trump administration has revoked permits for US and foreign oil firms in Venezuela, intensifying isolation of President Maduro. Companies such as Global Oil Terminals and Repsol are required to halt operations by May 27. This move is part of the US strategy to promote democratic reforms and address migration issues in Venezuela.

The Trump administration has rescinded permits and waivers for several Western energy companies operating in Venezuela, effectively isolating President Nicolas Maduro from the global oil market. This action affects firms such as US-based Global Oil Terminals, under the leadership of Harry Sargeant III, along with Spain’s Repsol and France’s Maurel et Prom, who must cease operations by May 27.

Additionally, licenses granted to Venezuelan gas companies connected to the state-owned PDVSA are now targeted by this decision. Previously, the US Treasury had permitted international oil and gas firms to conduct operations in Venezuela, including exporting oil from PDVSA despite existing sanctions.

Sargeant’s Global Oil Terminals is required to end its financial dealings with PDVSA by April 2 and clear any outstanding debts related to asphalt oil purchases. The Wall Street Journal disclosed that Sargeant’s oil-trading company was told to exit Venezuela in a notice from the Treasury.

Recently, Chevron was given a similar deadline of May 27 to terminate its activities in Venezuela, as part of the US strategy to compel Maduro’s government to facilitate democratic reforms and support the return of Venezuelan migrants to the United States.

Sargeant had initially received a two-year waiver in May of the previous year, allowing Global Oil Terminals to trade asphalt within the US and the Caribbean. The US Treasury Department did not offer any comments, and there was no immediate response from the White House, National Security Council, or State Department regarding these developments. Repsol, Maurel et Prom, and PDVSA also did not respond to inquiries.

The Trump administration’s revocation of permits for energy firms operating in Venezuela marks a significant escalation in efforts to isolate Maduro’s regime from the international oil market. This action impacts major companies and aims to pressure the Venezuelan government into democratic reforms and facilitate the return of Venezuelan migrants. The broader implications for the energy sector and international relations remain to be seen as firms scramble to comply with new restrictions.

Original Source: www.livemint.com

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