The Daily Journal.- Spanish energy company Repsol continues to produce around 580 million cubic feet of natural gas per day from the Cardón IV field, which it operates alongside Italy’s Eni in Venezuela, a company source said Wednesday during the Venezuela International Oil and Gas Summit.
Production has remained unchanged since March, when the government of acting President Delcy Rodríguez signed an agreement with Repsol to develop the field, one of Latin America’s largest natural gas assets.
Repsol had already reported production of 580 million cubic feet per day at Cardón IV when the parties announced the agreement, according to information the company released at the time.
The development of Cardón IV forms part of Venezuela’s process of reopening its hydrocarbon sector to foreign investment following reforms to its oil and gas legislation, against a backdrop of U.S. interest in expanding access to the country’s energy resources.
In February, Repsol CEO Josu Jon Imaz said the company was preparing to “restore and resume” its operations in Venezuela after receiving U.S. licenses allowing it to conduct activities in the country.
Imaz said at the time that one of the company’s priorities would be to maintain the gas supply for Venezuela’s electricity system and subsequently work to increase production.
Three agreements with Venezuela
Under the general licenses issued by the United States to ease restrictions on certain economic activities in Venezuela, Repsol signed three agreements with the Venezuelan government and Petróleos de Venezuela (Pdvsa) during the first half of the year to expand its participation in natural gas and crude oil production.
The first agreement seeks to strengthen the long-term stability of gas production at Cardón IV and establish payment mechanisms for production, including gradually allocating oil cargoes.
The second agreement allows Repsol to regain operational control of the Petroquiriquire asset, aiming to increase oil production and establish mechanisms to cover the company’s operating costs.
The third agreement calls for an assessment of the potential development of the Horcón area, located southeast of Lake Maracaibo.
With information from EFE
