Spanish energy company Repsol has reached an agreement with Venezuela to regain control of key oil assets and increase production in the coming years. The deal, signed with the Venezuelan government and state-owned oil firm PDVSA, is expected to allow Repsol to expand its operations and improve output, with plans to significantly scale production over the next three years.
Under the agreement, the company will operate under a framework that allows payments to be secured through oil shipments. This is expected to provide greater financial stability compared to previous years, when operations were impacted by sanctions and payment delays.
Repsol said it aims to increase production steadily, with an initial rise expected in the first year, followed by a substantial expansion if conditions remain favourable.
The agreement marks a shift after years of restrictions linked to US sanctions on Venezuela’s energy sector. Recent policy changes, including eased sanctions and new licensing arrangements, have opened the door for international companies to return and expand their presence.
The development also comes as global energy markets face supply pressure, prompting efforts to increase oil output from countries with large reserves. Venezuela, which holds one of the world’s largest crude reserves, is now seeking to attract foreign investment to revive its energy sector.
Repsol currently holds a stake in a joint venture that produces tens of thousands of barrels per day. With the new agreement in place, the company expects to raise production levels significantly over time.
However, the deal does not include a clear plan to recover past dues owed to the company. Instead, the focus remains on ensuring stable returns from future production.
The agreement reflects a broader trend of renewed international interest in Venezuela’s oil sector as geopolitical developments reshape global energy supply dynamics.
