What Happened: The Venezuelan government is threatening to nationalize Chevron's assets in Venezuela if Washington doesn't extend a key sanctions waiver, which is set to expire on July 27, Argus Media reported July 10. The exemption allows Chevron and other service companies, including Halliburton, Schlumberger and Baker Hughes, to continue a certain level of operations in the country.
Why It Matters: If the United States doesn't extend the waiver, Venezuela could offer Chevron's assets to Russian, Chinese and other non-U.S. companies. Chevron is the last major Western oil company still operating in the country and if its assets are transferred to Russian or Chinese firms, Beijing and Moscow would have a near-monopoly over Venezuela's oil sector in cooperation with state-run Petroleos de Venezuela.
Background: Chevron produces roughly 40,000 barrels per day of oil in Venezuela, including the Petropiar and Petroindependencia projects in the Orinoco Belt.