The Trump administration has labeled the Cartel de los Soles, a group tied to Venezuela’s government and military, as a foreign terrorist organization. This move, announced on Monday, is expected to make it even harder for foreign oil companies working in Venezuela to operate safely.
Experts say the designation raises big risks for companies like Chevron, which is still active in Venezuela despite years of sanctions. The cartel is believed to be led by senior army officers, and the military controls many key areas like the ports where oil operations take place. This blurred line makes it tough for companies to know who they might be dealing with.
Chevron has a special license from the U.S. Treasury that lets it work in Venezuela, but that doesn’t protect it from legal trouble in the U.S. If the company is found to be associating with the cartel, it could face civil lawsuits or criminal charges. Lawyers say even minor support to the cartel could trigger serious consequences.
Cornell professor Nicholas Mulder highlights that while license approval remains at the discretion of U.S. authorities, the new designation raises the stakes for businesses involved with Venezuelan state-owned firms. The goal, he adds, seems to be increasing long-term pressure on President Nicolás Maduro’s government.
The cartel was already on the U.S. Treasury’s watchlist. Now, with the added terrorist label, it faces even stricter sanctions. Similar designations have been applied to drug cartels from Mexico, Ecuador, and Colombia, as well as Venezuela’s Tren de Aragua gang.
José Ignacio Hernández, a consultant familiar with the situation, notes that the biggest challenge for companies is the lack of a clear list of cartel members. Oil firms must be extra careful to avoid dealing with anyone linked to the cartel, especially at military-operated ports.
Chevron remains committed to safe and lawful operations. Its CEO, Mike Wirth, said earlier this year that while working in Venezuela is tough, the company is playing a long game. Chevron produces about 25% of Venezuela’s oil, with half of that going to the Venezuelan state oil firm Petróleos de Venezuela SA, which ships mostly to China. Chevron sends its share to the U.S. market.
Other foreign oil companies in Venezuela include Spain’s Repsol and Italy’s Eni, though they have not commented on the recent designation.
This latest U.S. action follows months of aggressive attacks on vessels accused of drug running and President Trump’s warnings about the possibility of land strikes in Venezuela. For now, the sanctions put oil companies on notice: dealing with the Venezuelan military and connected groups could bring serious legal risks in the U.S. and beyond.