Spanish energy company Repsol has signed an agreement with Venezuela’s government to regain operational control of its oil business in the country and sharply increase production over the coming years. The deal, announced on Thursday, will allow Repsol to resume full management of its Petroquiriquire joint venture, which develops and operates oil fields in eastern Venezuela.
Repsol’s operations in Venezuela had been severely restricted since 2025, when Washington revoked its operating licence as part of broader sanctions affecting several foreign firms. Under the new arrangement, the Spanish firm aims to boost its daily crude output in Venezuela—currently averaging around 45,000 barrels—by 50 per cent within 12 months and potentially triple it within three years, provided certain conditions are met.
The agreement was signed between Repsol, Venezuela’s hydrocarbon ministry, and state oil company PDVSA, which holds a 60 per cent stake in Petroquiriquire. Repsol’s head of exploration and production, Francisco Gea, said the deal reaffirmed the company’s long-standing commitment to Venezuela, where it has operated since 1993. He added that Repsol has the technical, operational, and human resources to scale up production.
The development follows political changes in Venezuela, including the capture of former president Nicolás Maduro in January and the installation 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 liberalising the oil sector.
In March, the United States eased a seven-year oil embargo on Venezuela, granting licences to a limited number of multinationals—including Repsol—to operate under specific conditions. Separately, 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 said Venezuelan output was just under one million barrels per day in January, but could rise by 30 to 40 per cent 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 pushed prices higher.
