Spanish energy giant Repsol has reached an agreement with Venezuela’s government and state-owned Petróleos de Venezuela to regain operational control of key oil assets, marking a major shift in its position in the country after years of restrictions.
The deal is expected to allow Repsol to significantly increase production, with plans to boost output by 50 percent in the first year and potentially triple it within three years, depending on market and regulatory conditions. The agreement also includes a mechanism to secure payments through oil shipments, addressing longstanding financial hurdles.
Francisco Gea, Repsol’s executive managing director for exploration and production, said the company has maintained a continuous presence in Venezuela since 1993 and is well positioned to scale up operations. He pointed to the firm’s existing infrastructure and workforce as key advantages in accelerating output.
Repsol currently holds a 40 percent stake in the Petroquiriquire joint venture, which produces around 45,000 barrels of oil per day. The company aims to expand this capacity as part of the new arrangement.
The agreement follows a period of political and economic changes in Venezuela, including the detention of Nicolás Maduro in January and the emergence of an interim administration led by Delcy Rodríguez. Authorities have introduced reforms aimed at attracting foreign investment, including reducing state control and easing tax burdens in the energy sector.
The shift also aligns with efforts by the United States to stabilise global oil supplies amid ongoing tensions in the Middle East. Washington has begun easing some sanctions on Venezuela’s energy industry through licensing arrangements issued by the Office of Foreign Assets Control, allowing selected international companies to resume or expand operations.
Earlier this week, Spain announced the suspension of sanctions on Venezuela’s central bank, a move expected to simplify financial transactions for companies operating in the country.
In February, the US administration authorised several major energy firms, including Shell, BP, Eni and Chevron, to develop oil and gas projects in Venezuela. The involvement of multiple European companies reflects renewed international interest in the country, which holds the world’s largest proven crude reserves.
Industry analysts say the success of Repsol’s expansion plans will depend on continued regulatory stability and the durability of sanctions relief. If conditions hold, the agreement could mark a significant step in reviving Venezuela’s oil sector after years of decline.
