Chevron awaits Venezuelan oil cargoes but PDVSA seeking payments – report (NYSE:CVX)

Chevron (NYSE:CVXAfter receiving a U.S. licence to restart production, he hopes to begin receiving cargoes of Venezuelan crude oil by next month. However, the Maduro government might not be as eager. U.S. sanctions restrict payments, Reuters reported Monday.

Initial approval was received by PDVSA, the Venezuelan state company. authorization for a partial U.S. returnHowever, they have become less interested after learning about license terms that do not allow Chevron (CVXThe report states that ) to pay taxes or royalties in Venezuela to cover operational costs.

Chevron (CVX) had negotiated a deal with PDVSA this year that proceeds from oil exports would be distributed similar to past terms – roughly a third each for debt repayment, reimbursement of operational expenses to partner PDVSA, and for capital expenses – but the U.S. seems to have approved only debt reduction and capital expenses made directly by Chevron, leaving out taxes and royalty payments, Reuters reported.

Analysts believe that the U.S. could block further U.S. approvals and limit Venezuela’s oil production.

Chevron (CVX) shares have become expensive, “trading at a valuation where it needs high double-digit long-term prices, something that history shows is unlikely,” The Value Portfolio writes in an analysis posted recently on Seeking Alpha.