Repsol awaits US authorization to resume Venezuelan crude exports amid geopolitical shifts

Repsol’s presence in Venezuela is among its most significant international exposures, with nearly 15% of its proven oil and gas reserves—256 million barrels equivalent—and Venezuelan production representing its second-largest upstream market after the US. The company holds two major assets: a 50% stake in the Perla gas field, critical for the country’s electricity supply, operated jointly with Eni, and a joint venture with the state oil firm PDVSA for crude extraction. PDVSA has accrued substantial debts to Repsol—gross loans reached €894 million by mid-2025, with €536 million already provisioned. A pending balance of €359 million remains, partly offset by crude deliveries halted in March 2025 following US license revocations.

Since March 2025, Repsol’s Venezuelan crude exports to Spain ceased entirely after the Trump administration rescinded permits granted under Biden’s term. This disruption caused Venezuelan crude imports into Spain to drop from over 3 billion tons in 2024—its highest level in two decades—to near zero over April-October 2025, significantly impacting Repsol’s refinery operations on the Iberian Peninsula. The US government has indicated plans to invest heavily in Venezuelan oil through American majors like Chevron, Exxon, and ConocoPhillips, raising questions about the role European firms will play amid America-First energy policies.

Repsol’s executive team, led by CEO Josu Jon Imaz, is engaged in delicate talks with US energy officials to reconcile these developments, seeking regulatory clarity rather than preferential treatment. The company is simultaneously accelerating upstream investments in the US to strengthen its footprint there, hoping to leverage this to regain operational access in Venezuela. Despite provisions and asset impairments totaling over €600 million in recent semesters, Venezuela remains a strategic priority for Repsol, underscoring the intersection of geopolitics and energy market positioning in the region. The immediate future hinges on Washington’s licensing decisions and how Europe’s traditional players navigate the evolving landscape of Venezuelan hydrocarbons.