(Bloomberg) – The Trump administration revoked permits and waivers allowing Western energy firms to operate in Venezuela, three people familiar with the issue said Saturday. The move further isolates Venezuelan President Nicolas Maduro from the world oil market.
The decision covers a number of companies including U.S. oil firm Global Oil Terminals, led by energy magnate Harry Sargeant III.
Spain’s Repsol and France’s Maurel et Prom are among the other companies that must wind down operations in Venezuela by May 27, the people said.
The decision also targets licenses issued to Venezuelan gas companies that hold deals with the state petroleum company, PDVSA, one of the people said.
The U.S. Treasury Department had issued different permits to international oil and gas companies, including licenses, waivers or letters of comfort, to allow them to conduct different operations in Venezuela, such as exporting PDVSA’s oil, despite sanctions.
Sargeant’s Global Oil Terminals must also end financial transactions with PDVSA by April 2 and pay any remaining debt owed for the purchases of asphalt oil. The Wall Street Journal reported late Friday that Sargeant’s oil-trading company was ordered to leave Venezuela, citing a letter from Treasury.
The Trump administration recently gave Chevron a May 27 deadline to wrap up its operations with Venezuela as a way to pressure Maduro’s autocratic regime to make democratic reforms and accept the return of more Venezuelans who had migrated to the U.S.
Sargeant had initially obtained a two-year-waiver in May of last year, allowing Global Oil Terminals to purchase and transport asphalt to the US and the Caribbean.
The U.S. Treasury Department declined to comment, and the White House, National Security Council and State Department didn’t immediately respond to requests for comment.
Repsol, Maurel et Prom and PDVSA didn’t immediately reply to a request for comment.
