Repsol CEO says we are preparing to increase gas production in Venezuela by 10%, improve oil production

Repsol CEO says we are preparing to increase gas production in Venezuela by 10%, improve oil production

Repsol Eyes Gas Production Expansion in Venezuela Amid Policy Shifts

Repsol SA, the Spanish energy company, has indicated plans to increase natural gas production in Venezuela by 10% while exploring opportunities to enhance oil output, according to recent developments. This comes as Venezuela’s state oil company, PDVSA, expands access to oil fields for joint-venture partners under revised regulatory frameworks.

Venezuela’s National Assembly recently approved reforms to its primary oil law, granting foreign firms greater operational autonomy, including the ability to export and retain revenue from joint ventures with PDVSA. The changes, effective since late January 2026, have accelerated negotiations between PDVSA and international partners, including Repsol, to expand exploration and production rights in key oil regions. Most of the newly available areas are adjacent to existing projects, allowing companies to leverage existing infrastructure while reducing development risks.

Repsol’s current operations in Venezuela include the Cardon IV joint venture with Italy’s Eni SpA, which produces gas from the Perla offshore field. This project supplies critical natural gas to power plants in western Venezuela, underscoring its strategic importance for the country’s energy security. Despite losing authorization to produce crude oil in 2025 due to U.S. sanctions targeting former President Nicolás Maduro, Repsol remains active in gas projects, reflecting its focus on navigating regulatory challenges while maintaining a presence in the region.

The Trump administration’s recent push to revive Venezuela’s energy sector—including potential general licenses to ease sanctions for international oil companies— has created a more favorable environment for foreign investment. U.S. Energy Secretary Chris Wright highlighted Chevron’s role as a key player in Venezuela, noting the company’s potential to boost production by 30% within 18–24 months. While Chevron currently dominates Venezuela’s oil output under a special license, Repsol’s gas-focused strategy positions it to benefit from PDVSA’s expanded offerings and Venezuela’s vast, underdeveloped reserves.

With Venezuela’s oil production at approximately 1 million barrels per day— less than a third of its 1990s peak—the country remains a high-risk, high-reward market for energy firms seeking to capitalize on its untapped potential. Repsol’s announced production goals align with broader efforts to stabilize Venezuela’s energy sector amid geopolitical and economic uncertainties.