Repsol poised to expand Venezuelan oil production following operation licenses

During its Capital Markets Day in Madrid, Repsol CEO Josu Jon Imaz confirmed the company’s commitment to Venezuela, highlighting preparedness to boost production by 50% in the next twelve months and triple it in the following years, targeting approximately 135,000 barrels per day. This plan follows the recent receipt of operation licenses in Venezuela, with Repsol seeking to expand its presence through its existing two joint ventures in the country. Imaz noted that increased cash flow from operations will support this growth, though short-term financial impacts on Repsol’s accounts will be limited due to dividend policies in joint venture agreements.

Repsol’s Venezuelan assets have seen a marked reduction in exposure, decreasing from €504 million at the end of 2024 to €276 million in 2025, primarily linked to accounts receivable with PDVSA, financing provided to Petroquiriquire, and investments in Cardón IV and Petroquiriquire. Total commercial debt owed by PDVSA amounts to €3.603 billion with provisions covering €3.019 billion, alongside €947 million in financing with €568 million in provisions. The company noted that its Venezuelan operations remain decoupled from its overall 2026-2028 guidance, underscoring the cautious approach amid potential volatility.

Imaz also emphasized the strategic importance of Venezuela’s oil and gas revenues for the country’s economic transformation, reaffirming Repsol’s willingness to invest aggressively if future operational challenges demand additional partners. The company’s engagement follows high-level discussions in the United States, indicating strong international interest in Venezuelan oil sector revitalization.