Venezuela's Threat to Guyana Puts Chevron at Risk

Chevron Corp. faces new risks in Venezuela as President Nicolás Maduro threatens to annex a large portion of neighboring Guyana. If Maduro follows through on his threat, analysts expect the US to reinstate sanctions and potentially revoke Chevron's license to operate in Venezuela. The US has called on Venezuela to respect Guyana's territory, and Guyana's Vice President has urged oil companies to ignore Maduro's order to leave. While some see Maduro's threat as political bluster, analysts caution that his irrational decision-making could disrupt Venezuela's efforts to boost oil output. Chevron's $53 billion takeover of Hess Corp., which includes oil fields off Guyana, could also be in jeopardy, but analysts see Venezuela taking over that offshore production as unlikely due to logistical challenges.