Spanish energy company Repsol announced on Thursday, April 16, 2026, that it has reached an agreement with the Venezuelan government to “retake control of operations at the Petroquiriquire oil asset.”
Tripling Oil Production in Three Years
The petrochemical company stated it is “prepared to increase gross oil production in the country by 50% within 12 months and triple it in the next three years,” if “necessary conditions” are met.
The agreement with the Venezuelan government will establish a guaranteed payment system to prevent non-payment by the executive branch, according to the British newspaper Financial Times (FT), citing an internal source.
No Debt Reimbursement, But Future Payment Security
The FT indicates the agreement does not include a specific commitment from the Venezuelan government to reimburse the approximately $4.550 billion that Repsol claims it is owed for unpaid natural gas, and oil.
However, the payment guarantee included in the deal aims to provide the company with assurance that it will be paid for any production it supplies to the country in the future.
The agreement, which also includes Venezuelan state oil company PDVSA, follows a similar deal reached this week between Chevron and Caracas, allowing the American company to significantly expand its operations in the country.
Following Revocation and Novel Trump Authorization
Repsol had previously reached an agreement in 2023 to continue operating its facilities in Venezuela. However, that agreement became obsolete after U.S. President Donald Trump revoked licenses for Repsol and other Western companies to operate in Venezuela last year, as part of Washington’s efforts to pressure the regime of Nicolás Maduro, now detained in the U.S.
Following the capture of the former Venezuelan president in January, the Washington government relaxed sanctions against the country’s energy sector. Since then, general licenses have again allowed foreign energy companies to operate oil and gas projects in Venezuela.
One of these licenses will allow Repsol to operate in the country again: “This agreement is framed within the general license issued by the U.S. Administration,” the company explained.
Repsol, a Major Foreign Investor in Venezuela
Venezuela possesses one of the largest oil reserves in the world and was a major crude producer in the 1990s, but mismanagement, corruption, and U.S. Sanctions have led to the deterioration of the country’s energy infrastructure—a member of OPEC—and a drop in production to one million barrels per day, from a peak of approximately 3.5 million barrels per day, notes the FT.
Repsol holds a 40% stake in the Petroquiriquire oil field, with the remainder belonging to PDVSA. The field has three onshore oil fields that currently produce around 45,000 barrels daily.
Frequently Asked Questions
What is the primary goal of the agreement between Repsol and Venezuela?
The primary goal is for Repsol to retake control of operations at the Petroquiriquire oil asset and increase oil production in Venezuela.
Does the agreement include repayment of past debts owed to Repsol?
No, the agreement does not include a specific commitment from the Venezuelan government to reimburse the approximately $4.550 billion Repsol claims it is owed for unpaid gas and oil.
What led to the initial suspension of Repsol’s operations in Venezuela?
Repsol’s operations were limited after U.S. President Donald Trump revoked operating licenses for Repsol and other Western companies in Venezuela last year.
As Venezuela seeks to revitalize its oil industry, what challenges might Repsol face in achieving its ambitious production goals?
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