The Daily Journal — Petróleos de Venezuela S.A. (Pdvsa) and Spanish energy corporation Repsol signed a new Memorandum of Understanding on oil and gas cooperation this Tuesday at Miraflores Palace in Caracas.
According to official information, the agreement seeks to drive a large-scale revival of Venezuela’s hydrocarbon industry. Officials finalized the deal during a high-level meeting attended by Venezuela’s Acting President, Delcy Rodríguez, and senior executives from the Spanish company.
PDVSA President Héctor Obregón signed the document on behalf of Venezuela. In contrast, Francisco Gea Pascual de Riquelme, Executive Director of Exploration and Production and a member of Repsol’s Executive Committee, signed on behalf of the company.
After the signing ceremony, Repsol Chief Executive Officer Josu Jon Imaz highlighted the strategic value of the long-standing relationship between the multinational energy company and Venezuela, according to Presidential Press.
This new commercial initiative comes just days after the U.S. Department of the Treasury’s Office of Foreign Assets Control (OFAC) issued General License No. 50B. The federal measure selectively authorizes six major global energy corporations and their subsidiaries to continue and carry out oil and gas operations in Venezuela, with Repsol among the companies that qualify under the license.
The agreement signed at Miraflores advances a roadmap that both companies had been shaping under specific conditions. Last April, Repsol signed a contract with Venezuela’s Ministry of Hydrocarbons and Pdvsa, allowing the Spanish company to regain operational control and increase oil output at the Petroquiriquire joint venture, where it holds a 40% stake.
At that time, the parties also agreed to extend the duration of the field concessions. They formally incorporated the Tomoporo and La Ceiba fields under the same technical and governance framework.
Repsol currently produces approximately 45,000 barrels of oil per day in Venezuela, primarily from Petroquiriquire wells. However, corporate projections presented by the multinational point to significant growth in both the short and medium term.
According to CEO Josu Jon Imaz, Repsol stands ready to increase its gross oil production by 50% within the next 12 months by reinvesting revenue generated in the country. The company’s strategic plan also aims to triple production over the next three years, provided that favorable conditions continue and regulatory stability remains in place.
Based on a press release.
