Repsol recovers its business in Venezuela
The Spanish oil company signs an agreement with Caracas to expand the exploitation of a field in the South American country
BarcelonaThe Spanish oil company Repsol has signed an agreement with the Ministry of Hydrocarbons of Venezuela and the state-owned company Petróleos de Venezuela (PDVSA) that will allow it to resume control of operations and increase oil production in the South American country.
The Madrid-based multinational controls 40% of the Petroquiriquire field (the remaining 60% is held by PDVSA), according to a framework agreement originally signed in 2023 between Repsol and Venezuelan authorities. With the new agreement announced this Wednesday (Thursday in Catalonia), the company chaired by Antoni Brufau expects to increase oil production, guarantee payment mechanisms, and strengthen the operational framework of its activities in Venezuela.
"This agreement underscores Repsol's commitment to Venezuela, where we have operated uninterruptedly since 1993. We have the assets and the technical, operational, and human capabilities on the ground to increase our production in the country," assured the General Director of Exploration and Production at Repsol, Francisco Gea, after the signing of the contract. As reported by the Spanish energy company in a statement, the 2023 agreement established the necessary conditions to advance in the fulfillment of the production targets set by the partners, subject to PDVSA's programming of heavy crude shipments equivalent to Petroquiriquire's production.
The project will be developed under the shared leadership of Repsol and PDVSA "and in accordance with the highest technical, operational, and governance standards", the company has stressed. The framework agreement, which was subsequently amended in 2024, foresees the mechanism for extending the duration of the Petroquiriquire field concessions, to which the Tomoporo and La Ceiba fields were incorporated. Repsol's oil production in Venezuela currently amounts to approximately 45,000 gross barrels per day, mainly in Petroquiriquire.
Second agreement
Repsol's CEO, Josu Jon Imaz, had already announced that the company is prepared to increase gross oil production by 50% within 12 months and triple it in the next three years if the necessary circumstances continue to occur and using the revenues obtained in the country. Last month, Repsol and the Italian company ENI signed another strategic agreement with the Venezuelan government and PDVSA to guarantee the sustainability of natural gas production throughout 2026 in the Cardón IV asset (50% owned by the two companies) and to reinforce the long-term stability of operations.
The signing of these agreements comes after the issuance of a general license by the Office of Foreign Assets Control of the United States Department of the Treasury (OFAC), which authorizes Repsol and its subsidiaries to participate in transactions related to crude oil and gas operations in Venezuela with the Venezuelan government. This general license, the company argues, "represents a regulatory milestone that recognizes Repsol's track record as a responsible and reliable operator in the country".