Repsol Acquires Stakes in Two Venezuela Fields

Spanish oil major Repsol SA expects production to climb with the addition of two oil fields in a joint venture with Venezuela, where the company is exempt from reimposed US sanctions. The company recently signed a deal with state-owned Petroleos de Venezuela SA that adds the fields to its operations, which in the next few months are expected to produce 20,000 barrels a day, doubling what the European major currently produces in one of its three ventures, Chief Executive Officer Josu Jon Imaz said in a call with investors Thursday. 

The expansion agreement was signed hours before the US reimposed sanctions last week on Venezuela’s oil and gas activities. Companies such as Repsol and Italy’s Eni SpA have said previously arranged waivers with the US government allow them to continue operating. The waivers allow Repsol “to continue operations as we have been doing so far, even with sanctions in force,” the CEO said.  Repsol’s head for upstream, Francisco Gea, and Venezuela’s oil minister, Pedro Tellechea, sign an agreement during in Caracas in December. The new fields, Tomoporo and La Ceiba, contain more than 5 billion barrels of oil and are part of a venture in which Repsol holds a 40 percent stake and PDVSA holds the remainder.