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## Overview Chevron Corp. agreed to an asset swap with Venezuela that will significantly expand its oil operations in the country (Bloomberg, April 13). The deal follows Chevron's sustained presence in Venezuela through decades of political and economic turmoil and operates under a US OFAC license that has allowed limited operations. ## Deal Structure - Chevron agreed to an asset swap with Venezuela's state oil company PDVSA (Bloomberg, April 13). - The transaction will significantly expand Chevron's oil field footprint in Venezuela, according to Bloomberg (April 13). - Venezuela reportedly awarded specific oil fields to Chevron to help grow output (Bloomberg, April 13). ## Context Chevron has maintained operations in Venezuela under a specific OFAC general license that has survived multiple US administration policy shifts. The Iran war and associated Hormuz blockade have elevated the strategic value of Western Hemisphere oil production, likely motivating both parties to expand operations. ## Strategic Significance For energy sector attorneys and investors, the Chevron-PDVSA expansion is a significant sanctions navigation case study. It also intersects with ConocoPhillips's return to Venezuela and broader US policy on Western Hemisphere energy diversification amid Middle East supply disruption. The deal may face scrutiny from Venezuelan opposition groups and US political actors. ## Risks - OFAC license conditions and political risk remain elevated. - Maduro government stability is uncertain following reported capture narrative. - Asset swap structures in sanctioned jurisdictions carry complex title and enforceability risks.