Repsol Wins New Deal to Widen Presence in Venezuela
Repsol SA has signed a new agreement with Venezuela's Hydrocarbons Ministry and state-owned Petróleos de Venezuela (PdVSA) "to assess the potential development" of a new area southeast of Lake Maracaibo and near the Spanish company's existing portfolio in the South American country.
"The Horcón area is located between the Barúa and Motatán fields, which are already part of Repsol's portfolio of assets in Venezuela, together with the oil-producing fields of Petroquiriquire and Petrocarabobo, and the Cardón IV gas asset", Repsol said in an online statement.
"Through this agreement, the parties also expressed their intention to advance the analysis of offshore gas opportunities, with the aim of deepening studies and data on gas reservoirs in the Venezuelan offshore".
The signing ceremony in Caracas, witnessed by Venezuelan Acting President Delcy Rodríguez, also reviewed "payment mechanisms associated with existing agreements and the crude cargo schedule planned for the coming months", Repsol said.
Earlier Repsol executed an agreement with the government and PdVSA under which Repsol would grow its Venezuelan gross production by 50 percent within 12 months and triple it over the next three years.
"Repsol's gross production of oil in Venezuela currently amounts to around 45,000 barrels per day, mainly in Petroquiriquire", Repsol said in a press release April 16 announcing the agreement.
Repsol would reassume operational control of the Petroquiriquire field, where it owns 40 percent and PdVSA holds 60 percent, according to the agreement.
"The Framework Agreement establishes the necessary conditions to advance in the fulfillment of the production goals established by the partners, subject to PdVSA's scheduling of heavy crude cargoes equivalent to Petroquiriquire’s production", Repsol said.
"The Framework Agreement - originally signed in 2023 and subsequently amended in 2024 - provided for the mechanism to extend the duration of the Petroquiriquire field concessions and incorporated the Tomoporo and La Ceiba fields", Repsol added.
Among other conditions for the production increase, Repsol must be able to use proceeds generated in Venezuela, the company said.
Repsol said the agreement had been executed within the United States Treasury's General License (GL) 50A. The license, which provides exemptions from Washington's sanctions against Caracas, requires oil or gas taxes or royalties owed to the Venezuelan government or PdVSA to be paid into accounts designated by the U.S. government.
Treasury's Office of Foreign Assets Control issued the license February 18, over a month after the U.S. captured then-Venezuelan leader Nicolás Maduro.
Days after the capture, President Donald Trump issued an executive order that bars the judiciary from interfering with Venezuelan funds - designated as "Foreign Government Deposit Funds" - collected by the U.S.
"Unless licensed or otherwise authorized pursuant to this order, any attachment, judgment, decree, lien, execution, garnishment, or other judicial process is prohibited, and shall be deemed null and void, with respect to the Foreign Government Deposit Funds", stated the presidential order January 9.
GL50A said, "Any payments of oil or gas taxes or royalties to the government of Venezuela, PdVSA, or any PdVSA entity must be paid into the Foreign Government Deposit Funds or any other account as instructed by the U.S. Department of the Treasury".
Besides Repsol, GL50A also covers Britain's BP PLC and Shell PLC, Houston-based Chevron Corp, Italy's state-controlled Eni SpA and Paris-based Établissements Maurel & Prom SA.
To contact the author, email jov.onsat@rigzone.com
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