Venezuela Shakes the Sector: The Week in Oil and Gas

Chevron has increased its loadings of Venezuelan crude oil in early January 2026, marking one of the fastest export paces in months as political upheaval and new US–Venezuela arrangements reshape the country’s energy landscape. The developments coincide with reports that Chevron is negotiating with the United States government to expand its license to operate in Venezuela, a move that potentially opens the door to larger crude volumes and broader sales to international buyers.

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What’s at Stake in the O&G Industry With Maduro’s Capture?

The surge in oil exports follows a dramatic geopolitical shift in Venezuela. In early January 2026, US forces conducted a high-profile operation that led to the capture and removal of long-time President Nicolás Maduro. US authorities subsequently declared they would control Venezuelan oil sales indefinitely, directing the proceeds into accounts overseen by Washington under the premise that the revenues would benefit both Venezuela and the United States. This intervention has been widely characterized by the US government as a move to secure energy supplies and prevent Venezuela’s oil wealth from aligning with strategic competitors like China.

US Supreme Court Refuses Citigroup Appeal in Oceanografia Case

The US Supreme Court declined to hear Citigroup’s appeal in a lawsuit accusing the bank of facilitating more than US$1 billion in losses tied to fraud at bankrupt Mexican oil services firm Oceanografia, allowing lower court rulings reviving the case to stand. The decision leaves alive claims that Citigroup’s Banamex unit advanced US$3.3 billion in loans to Oceanografia despite knowledge of excessive debt and forged authorization forms allegedly linked to contracts with PEMEX. Plaintiffs including Oceanografia bondholders, shipping companies, and Netherlands-based Rabobank allege Citigroup withheld key information about Oceanografia while collecting interest on cash advances.

The legal battle unfolds against the backdrop of significant strategic changes by Citigroup in Mexico, where the bank has been reshaping its operations. In December 2025, Citigroup completed the sale of a 25% stake in its Mexican retail banking unit, Grupo Financiero Banamex, to a company owned by Mexican investor Fernando Chico Pardo and members of his family, following regulatory approvals from Mexican financial and competition authorities.

Sheinbaum Visits Tula Refinery; PEMEX Pushes Downstream Recovery

President Claudia Sheinbaum made a recent visit to the Refinería Miguel Hidalgo “Tula” in Hidalgo, underscoring the federal government’s renewed emphasis on strengthening PEMEX’s downstream operations amid broader efforts to reduce fuel imports and boost domestic refining capacity. The visit comes as the country’s refining sector shows early signs of recovery after years of underinvestment and operational challenges.

During her visit, Sheinbaum highlighted the strategic importance of Tula in Mexico’s refining network, noting improvements in processing levels and the deployment of upgrades that enhance fuel production efficiency. She reiterated her administration’s commitment to energy sovereignty and reduced dependence on imported fuels, situating the refinery’s progress within the government’s broader energy policy.

Record PEMEX Transfers Strain Mexico’s Finances

The record level of federal government transfers to PEMEX closed in 2025 at unprecedented levels, placing growing pressure on public finances and dimming prospects for fiscal consolidation, according to information published by the Mexican Institute for Competitiveness, IMCO. From January to November, financial transfers to the NOC reached MX$392 billion (US$21.995 billion), a historic figure for this point in the year and a central factor shaping Mexico’s fiscal balance as the year draws to a close.

The amount transferred to PEMEX exceeds by 187.8%, or MX$255.8 billion, the financial support originally approved for the entire 2025 fiscal year. It is also 121%, or MX$215 billion, higher than the resources channeled to the company during the same period in 2024. The scale of the support has made PEMEX the dominant variable in the federal budget during the final stretch of the year.

Venezuela, Mexican Firm Exchanged Oil Amid Sanctions

Following the collapse of Nicolás Maduro’s government after a US operation, renewed attention has turned to the case of Mexican businessmen who, starting around 2019, built an “opaque network “with the Venezuelan government that exchanged crude oil for food supplies. The episode, initially framed as a humanitarian mechanism, has resurfaced as a key example of how Venezuela sustained oil exports under international sanctions through foreign intermediaries.

Under the guise of a humanitarian swap, Venezuela used the Mexican company Libre Abordo to lift and market crude oil in the midst of US sanctions, a practice that allowed Venezuelan-origin crude to be exported and resold internationally while the promised humanitarian supplies were largely unfulfilled.

Since 2021 EL PAÍS and Armando.info reported documents reviewed by investigators that Libre Abordo was presented as a Mexican government-nominated partner to execute a program of exchanging oil for food, supported by government agencies, though the actual operations mainly moved crude oil rather than delivering the agreed humanitarian goods.