Repsol to ramp up Venezuelan operations, eyes gas exports

Spanish oil major Repsol is hopeful of reversing years of production declines in Venezuela amid an easing of sanctions in the South American country, CEO José Jon Imaz said on Thursday.

The US rolled back a series of restrictions against Venezuela – mostly related to the oil and gas industry – after Nicolás Maduro's regime reached an agreement with opposition parties to allow a competitive, internationally monitored election next year.

Among the concessions was a general license issued by the US Treasury Department, allowing companies in Venezuela to produce and export oil for the next six months.

"We have maintained our assets in the country through difficult times and now we think we can create value there," Imaz told investors during a quarterly earnings call.

"We have the opportunity to improve our operations in Venezuela and to start reversing production declines from our assets."

Repsol has equity stakes in eight oil and gas blocks in Venezuela: Perla, Quiriquire Gas, Petrocarabobo, Petroquiriquire, Ypergas, Quiriquire EM, Mene Grande and Barúa Motatán.

Imaz said the company is seeking to increase crude oil output from the PetroQuiriquire and PetroCarabobo licenses, in which it holds minority stakes. Combined production from the areas averaged around 22,500b/d last year, according to the Madrid-based firm. 

In May, Repsol and Italian company Eni received a local license to export natural gas liquids from their jointly run Cardón IV project. The partners were also cleared to ship limited volumes of Venezuelan oil to Europe, resuming a crude-for-debt swap deal that was halted in 2021 due to escalating sanctions. 

Imaz said gas would be at the forefront of Repsol's near-term plans for Venezuela.

"That includes gas that could be used for the needs of the country and, in the near future, it could even be exported," he added.