Nicolas Maduro has solidified his power over Venezuela following this weekend’s regional and parliamentary election, which his ruling party said it won in a landslide, while the opposition called for a boycott of the vote and claims turnout was below 15%.
Maduro, who has ruled the country with the world’s largest crude oil reserves since 2013, could incur even more sanctions from the United States on the oil industry and state oil firm PDVSA.
Venezuela’s electoral council, which is dominated by Maduro loyalists, said that the ruling United Socialist Party of Venezuela, PSUV, won governorship in 23 out of the 24 states. Turnout was estimated by the council at 43%, while the opposition says only 13% of voters voted in the election.
One of the key opposition leaders, Maria Corina Machado, has called for a boycott of the elections, which were rushed ahead of schedule. The opposition called the vote illegitimate and called for a boycott in response to Maduro’s crackdown on the opposition in recent months.
Maduro’s tightened grip on power could lead to new sanctions from the United States. The vote in Venezuela was held days before the expiry of the U.S. licenses for foreign firms – including supermajor Chevron – to operate in the country.
Last week U.S. Secretary of State Marco Rubio said that the U.S. license allowing companies to operate in Venezuela’s oil industry will expire as planned on May 27.
Earlier this year, the Trump Administration revoked Chevron’s license to operate in Venezuela and export oil from its oilfields, setting May 27 as the deadline for Chevron to wind down its operations in the South American country.
Venezuela saw its oil exports slump by nearly 20% in April from March to the lowest level in nine months, after state-owned oil firm PDVSA canceled cargoes for Chevron.
Further declines in Venezuela’s oil shipments are expected in May and going forward, as the U.S. Treasury has revoked a license for French oil firm Maurel & Prom to operate in Venezuela and is no longer allowing firms, including Eni and Repsol, to receive oil from PDVSA in lieu of payments.
By Charles Kennedy for Oilprice.com
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