US considers limited authorizations for oil firms in Venezuela, sources say

By Marianna Parraga, Matt Spetalnick and Timothy Gardner

HOUSTON/WASHINGTON (Reuters) -U.S. President Donald Trump's administration is discussing authorizations to key partners of Venezuela's state-run oil company PDVSA, starting with Chevron, which would allow them to operate with limitations in the sanctioned OPEC country, four sources close to the matter said on Thursday.

If granted, the authorizations to Chevron, and possibly also to PDVSA's European partners, would mark a policy swift from a pressure strategy Washington adopted earlier this year.

A senior State Department official said in a statement they could not speak about any specific licenses to PDVSA's partners, but added the U.S. would not allow President Nicolas Maduro's government to profit from the sale of oil.

The U.S. might now allow the energy companies to pay oilfield contractors and make necessary imports to secure operational continuity, two of the sources said.

"Chevron conducts its business globally in compliance with laws and regulations applicable to its business, as well as the sanctions frameworks provided for by the U.S. government, including in Venezuela," a company spokesperson said.

The discussions follow a prisoner swap this month. Washington has accused the government of socialist President Nicolas Maduro of violating democratic norms.

Trump in February announced the cancellation of a handful of energy licenses in Venezuela, including Chevron's, and gave until late May to wind down all transactions.

The U.S. State Department, which in May blocked a move by special presidential envoy Richard Grenell to extend the licenses, is this time imposing conditions to any authorization modifications, so no cash reaches Maduro's coffers, the two sources added.

But Secretary of State Marco Rubio could still decide to ban the move at the last minute or modify the scope of the new authorizations.

(Reporting by Marianna Parraga in Houston and Timothy Gardner and Matt Spetalnick in Washington, additional reporting by Sheila Dang)