The Trump administration is preparing to issue a narrowly focused license to Chevron (NYSE:CVX), allowing the oil major to perform essential maintenance and safety-related operations in Venezuela, Bloomberg News reported Friday. The license extension would come just before Chevron's current authorization expires next week.

According to sources familiar with the matter, the U.S. Treasury Department will grant a waiver permitting only critical upkeep activities, ensuring Chevron can maintain its existing assets without expanding operations. Chevron, the Treasury Department, and the State Department have not yet commented publicly on the reported decision.

The U.S. imposed sanctions on Venezuela's oil sector in 2019, significantly restricting business with the state-run oil firm PDVSA. These sanctions were aimed at pressuring President Nicolás Maduro's government amid political and economic turmoil. Chevron is one of the last remaining U.S. companies with a presence in Venezuela and has consistently sought to retain a foothold in the country's vast oil reserves.

Venezuela holds some of the largest proven oil reserves globally, but years of underinvestment, PDVSA mismanagement, and sanctions have slashed crude production to a fraction of past levels. Since 2023, limited licenses granted to Chevron and other foreign firms have helped drive a modest recovery in Venezuelan oil exports.

Any extension must be coordinated between the Treasury and State Departments, with the State Department providing policy guidance on sanctions. The restricted nature of this waiver ensures Chevron's activities are limited to safety and maintenance, without offering significant economic relief to Venezuela's government.

This development underscores the delicate balance Washington is trying to maintain -- allowing minimal foreign oil activity while upholding pressure on Maduro's regime.