Repsol SA said Thursday it had signed a deal with Venezuela on the terms of a renewed partnership that would see the Spanish company increase its oil production in the South American country.
Under the new agreement with the government and state-owned Petróleos de Venezuela SA (PdVSA), Repsol would grow its Venezuelan gross production by 50 percent within 12 months and triple it over the next three years, Repsol said in an online statement.
“Repsol’s gross production of oil in Venezuela currently amounts to around 45,000 barrels per day, mainly in Petroquiriquire”, the statement said.
Repsol would reassume operational control of the Petroquiriquire field, where it owns 40 percent with PdVSA holding 60 percent, as well as guarantee payment mechanisms, according to the agreement.
“The Framework Agreement establishes the necessary conditions to advance in the fulfillment of the production goals established by the partners, subject to PdVSA’s scheduling of heavy crude cargoes equivalent to Petroquiriquire’s production”, Repsol said.
“The Framework Agreement – originally signed in 2023 and subsequently amended in 2024 – provided for the mechanism to extend the duration of the Petroquiriquire field concessions and incorporated the Tomoporo and La Ceiba fields”, Repsol added.
Francisco Gea, Repsol executive managing director for exploration and production, said, “This agreement underscores Repsol’s commitment to Venezuela, where we have operated without interruption since 1993. We have the assets and the technical, operational and human capacities on the ground to increase our production in the country”.
Among other conditions for the production increase, Repsol must be able to use proceeds generated in Venezuela, Thursday’s statement said.
Repsol said the new agreement had been executed within the United States Treasury’s General License (GL) 50A. The license, which provides exemptions from Washington’s sanctions against Caracas, requires oil or gas taxes or royalties owed to the Venezuelan government or PdVSA to be paid into accounts designated by the U.S. government.
Treasury’s Office of Foreign Assets Control issued the license February 18, over a month after the U.S. captured Venezuelan leader Nicolás Maduro.
Days after the capture, President Donald Trump issued an executive order that bars the judiciary from interfering with Venezuelan funds – designated as “Foreign Government Deposit Funds” – collected by the U.S.
“Unless licensed or otherwise authorized pursuant to this order, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is prohibited, and shall be deemed null and void, with respect to the Foreign Government Deposit Funds”, Trump decreed January 9.
GL50A stated, “Any payments of oil or gas taxes or royalties to the government of Venezuela, PdVSA, or any PdVSA entity must be paid into the Foreign Government Deposit Funds or any other account as instructed by the U.S. Department of the Treasury”.
Besides Repsol, GL50A also covers Britain’s BP PLC, Houston-based Chevron Corp, Italy’s state-controlled Eni SpA, Paris-based Établissements Maurel & Prom SA, and Britain’s Shell PLC.