Spanish energy company Repsol has signed an agreement with the Venezuelan government to regain operational control of its oil business in the country and significantly increase production in the coming years. Announced on Thursday, the deal allows Repsol to resume full management of its Petroquiriquire joint venture, which develops and operates oil fields in eastern Venezuela. Repsol’s operations in the country had been severely restricted since 2025, when Washington revoked its operating license as part of broader sanctions affecting several foreign firms.
Under the new arrangement, Repsol aims to boost its daily crude output in Venezuela, which currently averages around 45,000 barrels, by 50 percent within 12 months and potentially triple it within three years, contingent upon meeting certain conditions. The agreement was signed between Repsol, Venezuela’s hydrocarbon ministry, and state oil company PDVSA, which holds a 60 percent stake in Petroquiriquire. Francisco Gea, Repsol’s head of exploration and production, stated that the deal reaffirms the company’s long-standing commitment to Venezuela, where it has operated since 1993. He emphasized that Repsol possesses the technical, operational, and human resources necessary to scale up production.
This development follows significant political changes in Venezuela, including the capture of former president Nicolás Maduro in January and the establishment of an interim administration led by Delcy Rodríguez. The new authorities have cooperated with US President Donald Trump’s administration and introduced reforms aimed at liberalizing the oil sector. In March, the United States eased a seven-year oil embargo on Venezuela, granting licenses to a limited number of multinationals, including Repsol, to operate under specific conditions.
In a related move, US oil giant Chevron signed two agreements with the Venezuelan government on Monday to expand production. Venezuela holds the world’s largest proven oil reserves and was once one of Latin America’s wealthiest nations, thanks to its thriving oil sector. However, production has collapsed over the past two decades due to underinvestment, mismanagement, and corruption, contributing to a severe political, social, and economic crisis. Speaking in Paris in February, US Energy Secretary Chris Wright noted that Venezuelan output was just under one million barrels per day in January but could rise by 30 to 40 percent by the end of 2026. The prospect of increased Venezuelan production comes as global oil markets face supply disruptions from the conflict in the Middle East, which has driven prices higher.
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