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Chevron has been banned from drilling or transporting oil in Venezuela and its assets there are “mothballed†as the Trump administration cracks down on money going to the government of socialist President Nicolas Maduro, a senior U.S. official said.
Seeking to mount pressure on Maduro, the U.S. Treasury Department late on Tuesday imposed tight new restrictions on Chevron’s joint ventures with Venezuelan state-run oil company PDVSA, which could pave the way for the California-based company’s departure.
The license prohibits Chevron or any American company from drilling, bartering or selling oil or petroleum products with the Maduro government as of Tuesday night, the U.S. official told reporters on a call.
Chevron’s assets “are mothballed and essentially it’s … a de facto wind-down, which allows them to just ensure that their assets remain viable and that the Venezuelan people that work for them are able to continue getting paid during these dire times,†the official added.
The license gives Chevron until Dec. 1 to “wind down†operations in OPEC member Venezuela, but the license could be renewed at a later date, allowing the company to stay there longer.
The action targets what some officials in the administration of President Donald Trump say is a key financial lifeline for Maduro as Washington seeks to stifle trade in Venezuelan crude and loosen his grip on power.
Chevron, which has been in Venezuela for about 100 years, said the new license permits the company to undertake limited maintenance of essential operations in the country.
“We will continue to comply with applicable laws and regulations,†said spokesman Ray Fohr.
Washington has ramped up sanctions on Venezuela in recent months as Trump’s hardline approach has support in the Cuban-American community in south Florida, a key constituency in an important swing state as he seeks re-election in November.
Still, some U.S. officials have privately said Trump is frustrated over the failure of his Venezuela policy to unseat Maduro.
The U.S. Treasury recently blacklisted two trading units of Russian oil giant Rosneft, for conducting business with PDVSA. Rosneft had accused Washington of double standards for allowing U.S. companies to continue working in Venezuela.
Asked whether Rosneft has done enough to get sanctions lifted on its trading unit, the official said: “Not yet.
Washington was watching closely to see whether Rosneft Trading “permanently ceases any interaction with the Maduro regime,†the official said.
Chevron last month canceled service contracts and procurement processes at the two joint ventures, a move the company attributed to falling crude prices.
The company said its share of output at its joint ventures with PDVSA dropped 16% in 2019 to 35,000 barrels per day, mirroring the decline in crude output across the country.
Source: Reuters
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Valaris Limited announced new contracts awarded subsequent to issuing the Company’s most recent fleet status report on February 21, 2023. Three-year contract with Petrobras for drillship VALARIS DS-8. The rig will be reactivated for this contract. The total contract value is approximately $500 million, including a $30 million mobilization fee. 100-day contract with a TotalEnergies affiliate for drillship VALARIS DS-12. The contract is expected to commence in second quarter 2023. 70-day contract with Beach Energy offshore New Zealand for heavy duty modern jackup VALARIS 107. The contract is expected to commence in third quarter 2023. The total contract value is approximately $26 million. President and Chief Executive Officer Anton Dibowitz said, “We are particularly pleased to have secured the award for preservation stacked drillship VALARIS DS-8, for a contract that is expected to generate a meaningful return over the firm contract term, and we remain focused on exercising our operational leverage in a disciplined manner. This most recent award represents the sixth contract awarded to one of our high-quality stacked floaters since mid-2021, and speaks volumes about our demonstrated track record of project execution when reactivating rigs.” Dibowitz added, “Following the reactivation of VALARIS DS-17 and DS-8, we will have ten floaters working across the golden triangle, including four drillships in Brazil, a market where we expect to see continued growth over the next several years.” Updated Guidance As a result of the contract awarded to VALARIS DS-8, which will require the rig to be reactivated from preservation stack, we are updating our first quarter 2023 and full-year 2023 guidance provided on our fourth quarter 2022 conference call on February 21, 2023. First Quarter 2023 Contract drilling expense is expected to increase by approximately $5 million to $385 million to $395 million. Adjusted EBITDA is expected to decrease by approximately $5 million to negative $5 million to breakeven. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $25 million to $30 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Full-Year 2023 Revenues are anticipated to be $1.8 billion to $1.9 billion, unchanged from the guidance provided on our fourth quarter 2022 conference call. Contract drilling expense is expected to increase by approximately $60 million to $1.49 billion to $1.59 billion. Adjusted EBITDA is expected to decrease by approximately $60 million to $180 million to $220 million. Adjusted EBITDAR, which adds back one-time reactivation expense, is expected to be $280 million to $320 million, unchanged from the guidance provided on our fourth quarter 2022 conference call. Capital expenditures are expected to increase by $60 million to $320 million to $360 million. Source: Valaris Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Seadrill Limited announced that the West Neptune has executed approximately six months of term extensions with LLOG Exploration Offshore, L.L.C in the US Gulf of Mexico. The extensions will commence in direct continuation of the existing term, and will keep the rig busy until Q3 2024, furthering Seadrill and LLOG’s long-term association. Total contract value for the extension is approximately $79 million. Source: Seadrill Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
Semisub rig owner Dolphin Drilling has inked a new contract with Peak Petroleum in Nigeria for its 1974-built Blackford Dolphin. The firm contract, which follows the letter of award in January, gives the Euronext Growth-listed owner of three rigs the potential to extend the unit’s backlog by a minimum of 120 days and up to 485 days. The deal adds to and will be a direct continuation of the previously announced 12-month contract with General Hydrocarbon Limited (GHL). Øystein Stray Spetalen-backed company said the effective dayrate associated with the minimum firm period of the contract is $325,000, including the mobilisation fee. “The final award of the contract for Blackford Dolphin shows the opportunities in Nigeria at a strong dayrate, in addition to building on the backlog for the rig. It also underlines the attractiveness of our assets, and we look forward to returning to revenue-generating operations in 2023,” noted Bjørnar Iversen, CEO of Dolphin Drilling. Source: Dolphin Join our mailing list here We are #1 on Google and Bing for the "Largest Mobile Energy Network" Come join our community! Download the Rig Lynx app here
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