Repsol to increase oil production in Venezuela with two new fields despite U.S. sanctions

Fabiola Zerpa, Bloomberg April 26, 2024

(Bloomberg) – Spanish oil major Repsol SA expects production to climb with the addition of two oil fields in a joint venture with Venezuela, where the company is exempt from reimposed U.S. sanctions.

Repsol’s head for upstream, Francisco Gea, and Venezuela’s oil minister, Pedro Tellechea, sign an agreement during in Caracas in December.Source: Bloomberg

The company recently signed a deal with state-owned Petroleos de Venezuela SA that adds the fields to its operations, which in the next few months are expected to produce 20,000 bpd, doubling what the European major currently produces in one of its three ventures, Chief Executive Officer Josu Jon Imaz said in a call with investors Thursday.

The expansion agreement was signed hours before the U.S. reimposed sanctions last week on Venezuela’s oil and gas activities. Companies such as Repsol and Italy’s Eni SpA have said previously arranged waivers with the U.S. government allow them to continue operating.

The waivers allow Repsol “to continue operations as we have been doing so far, even with sanctions in force,” the CEO said.

The new fields, Tomoporo and La Ceiba, contain more than 5 Bbbl of oil and are part of a venture in which Repsol holds a 40% stake and PDVSA holds the remainder.

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