*

Trump says Venezuela not taking migrants back fast enough

*

Trump also cites Venezuela's 'electoral conditions'

*

Oil agreement was concession granted to Chevron ( CVX )

*

U.S. oil licenses boosted Venezuela's economy

(Adds figures on earnings and Venezuelan opposition leader

reaction in paragraphs 14, 20, 21)

By Matt Spetalnick, Marianna Parraga and Timothy Gardner

WASHINGTON, Feb 26 (Reuters) - U.S. President Donald

Trump on Wednesday said he was reversing a license given to

Chevron ( CVX ) to operate in Venezuela by his predecessor Joe

Biden more than two years ago, accusing President Nicolas Maduro

of not making progress on electoral reforms and migrant returns.

In a post on Truth Social, Trump said he was "reversing the

concessions" of the "oil transaction agreement, dated November

26, 2022."

Trump did not name Chevron ( CVX ) in his comments, but Washington

granted Chevron ( CVX ) a license to operate in Venezuela's oil sector

on November 26, 2022. It was the only license the administration

issued for Venezuela that day.

"The U.S. government has made a damaging and

inexplicable decision by announcing sanctions against the U.S.

company Chevron ( CVX )," Venezuelan Vice President Delcy Rodriguez said

in a statement posted on Telegram.

She said "these kinds of failed decisions" had prompted

migration out of Venezuela.

The White House and the U.S. State Department did not

immediately respond to requests for further detail on Trump's

comments.

Chevron ( CVX ) said it was aware of Trump's post and considering

its implications.

Chevron ( CVX ) exports about 240,000 barrels per day of crude from

its Venezuela operations, over a quarter of the country's entire

oil output.

Ending the license means Chevron ( CVX ) will no longer be able

to export Venezuelan crude. And if Venezuela's state oil company

PDVSA exports oil previously exported by Chevron ( CVX ), U.S.

refineries will be unable to buy it due to U.S. sanctions.

Since his return to office in January, Trump has repeatedly

said the U.S. does not need Venezuelan oil and left open the

possibility of revoking Chevron's ( CVX ) operating license.

During his first term, Trump pursued a "maximum pressure"

sanctions policy against Maduro's government, especially

targeting Venezuela's energy business.

After initially easing sanctions to encourage fair and

democratic elections, Biden in April reinstated broad oil

sanctions, saying Maduro failed to keep his electoral promises.

But Biden had left the Chevron ( CVX ) license intact, along with U.S.

authorizations granted to several other foreign oil companies.

Tax and royalty payments resulting from Chevron's ( CVX ) license

have provided a steady source of revenue to Maduro's

administration since early 2023, a source familiar with

Venezuela's oil industry said. The money has lifted Venezuela's

economy, especially its oil and banking sectors, which expanded

last year.

The government take from oil activities covered by all

U.S. licenses, to Chevron ( CVX ) and a handful of European companies,

is estimated between $2.1 billion and $3.2 billion annually,

only considering royalties and taxes, said Jose Ignacio

Hernandez from consultancy Aurora Macro Strategies.

U.S. Energy Secretary Chris Wright said on Wednesday after

Trump's comments that the U.S. is the world's largest oil

producer and "small interruptions from other nations" will not

affect global supply.

ELECTORAL CONDITIONS 'NOT BEEN MET'

In early February, Trump said Caracas had agreed to receive

all Venezuelan migrants in the United States illegally and

provide for their transportation back.

That came a day after U.S. envoy Richard Grenell met with

Maduro in Caracas and brought six U.S. detainees back.

Trump said in Wednesday's post Maduro had not met "electoral

conditions" and that he was not transporting Venezuelans back to

the United States at a pace that had been agreed to.

Trump did not detail what he meant by "electoral

conditions." Maduro's last two election wins were both disputed

by Washington, with Venezuela's opposition saying it won the

July 2024 presidential election by a landslide, an assertion

backed by the U.S. and other Western countries.

The cancellation of the license proves Trump is on the side

of Venezuelans, opposition leader Maria Corina Machado told

Trump's son Donald Trump Jr. during an interview on the latter's

video and podcast interview show.

"What you just mentioned is proof for me that President

Trump is on the side of the Venezuelan people, of democracy, and

prosperity of the U.S. and for Venezuela as well," Machado said,

adding the question from Trump Jr. was the first she had heard

of his father's decision. "This is exactly the path ahead."

The oil concession agreement would be terminated as of the

March 1 option to renew, Trump said.

It was not immediately clear what would happen with cargoes

of Venezuelan crude currently navigating to U.S. ports or about

to depart from Venezuela through the end of the month.

Maduro and his government have always rejected sanctions by

the United States and others, saying they are illegitimate

measures that amount to an "economic war" designed to cripple

Venezuela.

Maduro and his allies have cheered what they say is the

country's resilience despite the measures, though they have

historically blamed some economic hardships and shortages on

sanctions.

When the license was first issued, Chevron ( CVX ) was owed about $3

billion by Venezuela. According to the company's debt recovery

plan, explained by sources, by the end of 2024 it should have

recouped some $1.7 billion as oil output approached an average

of 200,000 barrels per day as expected.

Chevron's ( CVX ) automatically renewing license allowed it to

expand crude output at joint ventures with PDVSA and send some

240,000 bpd to its own refineries and other customers.

Chevron ( CVX ) said earlier in February it will lay off up to 20%

of its global staff by the end of 2026 as part of an effort to

cut costs and simplify the business. Chevron ( CVX ) told its employees

the company was falling behind competitors and struggled to

quickly make decisions.