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Chevron waits for Venezuelan oil cargoes but PDVSA is seeking payments – report (NYSE: CVX)


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Chevron (NYSE:CVX) hopes to start receiving shipments of Venezuelan oil as soon as next month after winning a US license to resume production in the country, but the Maduro government may not be too eager because US sanctions restrict paymentsReuters reported on Monday.

Executives at Venezuela’s state-owned company PDVSA initially welcomed Authorization for partial return to the United Statesbut they were less excited after learning the license terms didn’t allow Chevron (CVX) to reimburse operating costs or pay taxes and royalties in Venezuela, according to the report.

Chevron (CVX) negotiated an agreement with PDVSA this year that the proceeds from oil exports would be distributed similarly to previous terms – about a third each to repay debt, reimburse operating expenses. for PDVSA partners and capital costs – but the US appears to have approved Reuters reports, reducing only debt and capital costs directly carried out by Chevron, ignoring taxes and royalties.

Analysts say the restrictions could ultimately limit any gains to Venezuela’s oil production and exports, preventing further authorization by the United States.

Chevron (CVX) stock has become expensive, “trading at a valuation where it needs double-digit highs over the long-term, which history shows is unlikely,” The Value Portfolio wrote in a report. . Analysis recently posted on Seeking Alpha.

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