Seeing the Big Picture through Small Signs: A Barometer of U.S.–Venezuela Relations — Chevron’s Operating License

• Authorization of oil and natural gas sales and exports: Permits Venezuela to sell oil and natural gas to the United States and other jurisdictions. This means that, during the validity period of General License 44 (GL44), Venezuela’s oil and natural gas export activities—previously restricted by U.S. sanctions—may lawfully be conducted with the United States and other countries or regions. • Coverage of related payment obligations: Taxes, royalties, costs, fees, dividends, and profit payments associated with oil and gas industry operations are authorized. This ensures that Venezuela’s oil and natural gas sector can carry out necessary financial settlements and distributions during normal operations, safeguarding orderly cash flow and operational continuity. • Authorization of payments related to PDVSA transactions: Payments arising from transactions involving Petróleos de Venezuela, S.A. (PDVSA)—Venezuela’s state-owned national oil company—are authorized. As the core enterprise of Venezuela’s oil and gas industry, PDVSA’s transaction-related payments are critical to the sector’s overall operations. This includes PDVSA’s payments for procuring goods and services and engaging in project collaborations, enabling PDVSA to conduct business normally and maintain effective economic exchanges with domestic and international suppliers and partners. • Production and service provision covered under a non-exhaustive list of authorized transactions: Authorization covers the production, extraction, sale, and export of Venezuelan oil and natural gas, as well as the provision of related goods and services. This encompasses not only upstream and downstream activities involving oil and natural gas themselves, but also related goods and services across the entire value chain. • Authorization of bill payments: Payments for bills related to goods or services supporting Venezuela’s oil and gas industry operations are authorized. This enables Venezuelan oil and gas enterprises to timely settle expenses for equipment, raw materials, technical services, and other inputs—ensuring production and business activities remain unimpeded by payment restrictions and sustaining normal industry operations. • Authorization of new investment: New investment in Venezuela’s oil and gas industry operations is authorized. • Authorization of debt repayment: Venezuela may deliver oil and natural gas to creditors of the Venezuelan government—including creditors of PDVSA-affiliated entities—for debt repayment. This provides Venezuela with a mechanism to repay debts using physical assets, helping address debt issues faced by the Venezuelan government and PDVSA and its subsidiaries. Due to lack of progress between the Venezuelan government and the opposition on allowing all presidential candidates to participate in elections, the U.S. Department of State issued a statement on January 30, 2024, announcing it would not renew GL44. Upon GL44’s expiration, the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued GL44A, granting a transitional period for transactions previously authorized under GL44, extending until May 31, 2024. 2. Differences between GL41 and GL44 • Divergent policy objectives and scopes: • GL41 is an exception-based authorization. It was primarily designed to resolve Chevron’s specific debt recovery issue (i.e., recouping outstanding receivables), modestly increase global heavy-oil supply—particularly for the U.S. market—and strictly prevent funds from flowing to the Venezuelan government or PDVSA. • GL44 represents a broader relaxation of sanctions. It was a direct reward and incentive from the U.S. government following the Venezuelan government’s and opposition’s signing of an electoral roadmap agreement, aimed at encouraging political dialogue and democratic progress. By permitting Venezuela to sell oil to global markets, GL44 sought to revitalize Venezuela’s economy and create conditions conducive to a potential political transition. • Fund-flow treatment differs fundamentally: • GL41 explicitly prohibits payments of taxes, royalties, or dividends to the Venezuelan government or PDVSA, aiming to maximize financial isolation. • GL44 initially permitted such payments—signaling U.S. tacit acceptance of fund inflows into Venezuela, conditional upon its fulfillment of electoral commitments. However, GL44A later revoked this authorization. • Opposite provisions regarding new investment: • GL41 explicitly prohibits new field development in Venezuela, preventing Chevron from expanding its operational footprint there. • GL44 initially explicitly authorized new investment in Venezuela’s oil and natural gas sector, aiming to attract capital back into Venezuela’s energy sector and help restore long-term production capacity. This authorization was subsequently rescinded under GL44A.

Baker Hughes — A Global Leader in Oilfield Services

Leading companies are ramping up gas turbine production capacity; GE Vernova (GEV) has raised its expansion target. According to a news release published on GEV’s official website on March 6, 2025, GEV plans to achieve an annual heavy-duty gas turbine production capacity of 70–80 units by the second half of 2026. Per GEV’s Q1 2025 earnings call transcript posted on its official website, GEV remains focused on fulfilling its strategic goal of delivering 20 GW annually starting in the second half of 2026—and sustaining that 20 GW annual delivery rate beginning in 2027. In its investor update presentation dated December 9, 2025, GEV forecasts raising its annual production capacity to 20 GW by mid-2026, and further increasing it to 24 GW by 2028—including 90–100 heavy-duty gas turbines. According to Siemens Energy’s official website presentation released on November 20, 2025, Siemens Energy achieved a gas turbine production capacity of 17 GW in fiscal year 2024, targets 22 GW annually for fiscal years 2025–2027, and aims for over 30 GW annually for fiscal years 2028–2030. In fiscal year 2025, Siemens Energy secured new gas turbine orders totaling 26 GW—a 62.5% increase compared to new orders in fiscal year 2024. According to a report by the Sci-Tech Innovation Board Daily on September 2, 2025, Mitsubishi Heavy Industries CEO Ei Ito stated in an interview on August 29, 2025, that the company plans to double its gas turbine production capacity within the next two years. 3.4 Baker Hughes Confident in Accelerating Achievement of Data Center Power Generation Gas Turbine Order Targets Major data center power generation gas turbine orders emerged for the first time in Q1 2025; over two-thirds of Nova LT orders booked that quarter will serve data centers. According to Baker Hughes’ Q1 2025 earnings call presentation posted on its official website, downstream demand from data centers—especially in North America—has been robust. In Q1 2025, the company secured its first major order for data center applications: over 350 MW worth of Nova LT gas turbines were reserved. Per Baker Hughes’ Q1 2025 earnings call transcript posted on its official website, of the 35 Nova LT series gas turbines reserved in Q1 2025, 22 units—equivalent to over 350 MW—will be deployed to power data centers. According to a report by U.S. News & World Report on April 23, 2025, Baker Hughes expects to secure at least $1.5 billion in data center equipment orders over the next three years. Natural gas infrastructure and power generation are driving order growth. According to Baker Hughes’ Q3 2025 earnings call transcript posted on its official website, the company aims to secure at least $40 billion in Industrial Equipment & Technology (IET) orders over the next three years. It anticipates growth to be led by natural gas infrastructure, power generation, and new energy markets, while liquefied natural gas (LNG) equipment orders are expected to remain consistent with the solid performance seen over the past two years. Baker Hughes is observing sustained momentum in data center power demand.

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