Spain’s Repsol Regains Control of Venezuela Oil Assets

(Credit: Repsol)

Spanish energy group Repsol has reached an agreement with the Venezuelan government and state energy firm PDVSA to take back operational control of its Venezuelan oil assets and boost production, the company said on Thursday.

The agreement includes plans to triple production from its Venezuelan oil operations within three years and guarantee payment mechanisms for it.

Venezuela holds one of the largest oil reserves in the world but has a dilapidated energy infrastructure.

"This agreement underscores Repsol's commitment to Venezuela, where we have operated without interruption since 1993," said Executive Managing Director of Exploration and Production Francisco Gea.

"We have the assets and the technical, operational and human capacities on the ground to increase our production in the country."

The Spanish company's current gross oil production in Venezuela is around 45,000 barrels per day.

After the U.S. captured President Nicolas Maduro in January, Washington eased sanctions on Venezuela's energy sector, issuing general licences that allow global energy companies to operate oil and gas projects and play a role in rebuilding the OPEC member's energy sector.

Last month, Repsol and Italy's Eni signed strategic agreements with Venezuela to ensure gas production at the Cardon IV field, a 50-50 joint venture between Eni and Repsol.

The Financial Times had reported the news of Repsol winning back control of its oil operations in Venezuela earlier on Thursday.

(Reuters - Reporting by Disha Mishra and Pietro Lombardi; Editing by Sherry Jacob-Phillips and Emelai Sithole-Matarise)