Chevron is mounting a last-ditch effort to salvage its Venezuelan operations by engaging in intense lobbying at the highest levels of the US government, the Wall Street Journal reported citing people familiar with the matter.

Caught in a complex diplomatic standoff, Chevron is spearheading a vigorous diplomatic campaign, with CEO Mike Wirth personally pleading with senior US officials for an extension of the company's operating licence in Venezuela, set to expire on April 3.

Last month, President Donald Trump announced the revocation of licences granted by the Biden administration that allowed US oil companies to operate in Venezuela despite crippling sanctions on the country, a move that particularly affects Chevron, the only major American oil company with significant operations there.

The US oil refiner has a substantial footprint in Venezuela, where it accounts for approximately 25 per cent of the country's total oil production, estimated at around 240,000 barrels per day (bpd). The company has argued that an abrupt withdrawal could create a power vacuum potentially exploited by US geopolitical rivals, particularly China.

During private discussions, Wirth has emphasised the potential strategic consequences of a complete exit. He contends that an immediate departure would not only destabilise Venezuela's fragile economic landscape and drive a new wave of migration, but could also inadvertently create an opening for increased Chinese influence in the region.

“Chevron executives meet regularly with government officials in Washington to engage constructively on issues related to our business – both in the US and abroad. We do not confirm or comment on those discussions,” Chevron spokesperson Bill Turenne told CNBC in response to an inquiry.

“Chevron conducts its business globally in compliance with all laws and regulations, including any sanctions frameworks provided for by the US government.”

Still, the company faces significant headwinds. Key US officials, including Secretary of State Marco Rubio, known for his hawkish stance on Latin American leftist regimes, have long criticised the licence, considering it a key source of dollar funding for President Nicolas Maduro's government, which the US and many Western countries do not recognise as the legitimate winner of the disputed July 2024 election.

The Trump administration had previously appeared willing to disregard concerns over democracy and maintain the Chevron authorisation as long as the Maduro regime cooperated on accepting deported Venezuelan nationals. In what many viewed as a sign of improved relations, Trump's envoy Richard Grenell travelled to Caracas in January to discuss migration cooperation, securing Venezuela's willingness to accept deportees from the US and bringing back home six “wrongfully detained” Americans.

However, Washington swiftly backtracked and axed Chevron's licence after pressure from a group of Republican lawmakers dubbed the “crazy Cubans,” who "stood on principle and delivered for their community” by convincing Trump to cancel the waiver, as reported by Axios. In return, the group allegedly agreed to vote for the GOP budget deal, which was narrowly approved in late February.

"They're going crazy and I need their votes," Trump told confidants, as quoted by Axios.

Meanwhile, European oil companies with Venezuelan interests are watching Chevron's negotiations closely, understanding that their own operational futures may hinge on the outcome of these discussions. Companies such as Repsol, Eni, Maurel et Prom, Shell and BP have significant stakes in Venezuelan energy projects.

Despite the current uncertainty, industry insiders suggest Chevron is unlikely to completely cease its Venezuelan operations. Instead, the most probable scenario involves a strategic handover to Venezuela's national oil company, Petróleos de Venezuela (PDVSA).

Joint ventures between Chevron and PDVSA are estimated to have contributed around $4bn in tax payments over the past two years, accounting for roughly a quarter of the Venezuelan government’s total revenue.

Some of this cash has trickled down to consumers, supporting a modest recovery visible in new retail chains, luxury stores and car dealerships in Caracas.

Yet the vast majority of Venezuelans endure crushing poverty, with over 7.7mn citizens forced to flee the country over the past decade, and the goal of regime change remains elusive despite years of intense economic and political pressure.