Repsol, one of the main foreign players still present in Venezuela, is continuing its collaboration with Nicolas Maduro’s government.
The recent meeting between Maduro and senior Repsol executives, including José Carlos de Vicente Bravo, head of international exploration and production, formalized new agreements in the oil and gas sector.
These discussions took place against a backdrop of heightened diplomatic tensions between Venezuela and Spain, linked to accusations of fraud in the recent Venezuelan presidential elections.
The meeting marked an important milestone in the relationship between Repsol and Venezuela, despite the international community’s reluctance to recognize Maduro as the legitimate president.
Venezuelan Vice-President Delcy Rodriguez and Hector Obregon, President of the national oil company PDVSA, were also present.
The aim of these discussions is to strengthen energy cooperation between the two parties, particularly with regard to exploration and production activities in several regions of Venezuela.
Repsol continues to operate under sanctions
Repsol remains one of the few foreign companies to continue operating in Venezuela, despite US sanctions targeting the country’s oil sector.
Thanks to an individual license, the Spanish company can maintain its operations without violating international sanctions.
This enables it to maintain a strategic position in a country with vast oil and gas reserves, while limiting its legal and financial risks.
Repsol holds a 40% stake in the Petroquiriquire joint venture, while PDVSA controls 60%.
The joint venture’s projects are valued at $340 million.
New discussions between Repsol and the Venezuelan government aim to improve operating conditions and maximize the profitability of these projects despite economic constraints.
Repsol’s management is focusing primarily on stabilizing production, particularly in the gas sector.
Venezuela, with its considerable reserves, offers long-term opportunities for companies that can operate in this unstable context.
However, the political environment and international sanctions represent major challenges that Repsol must overcome.
A strategy for adapting to uncertainty
US sanctions imposed on the Venezuelan oil sector complicate the situation for foreign companies.
Nevertheless, Repsol has adjusted its strategy, focusing on risk management and negotiating agreements with Maduro’s government to ensure the continuity of its activities.
This includes securing oil and gas exports, essential for maintaining the revenues needed to keep its projects stable.
Although the sanctions limit access to international markets and restrict financing opportunities, Repsol has chosen to maintain its operations.
This decision reflects a pragmatic approach, taking into account the long-term potential of Venezuela’s natural resources.
The company is thus pursuing its commitment in a country where sanctions and political instability make operations complex.
Recent negotiations between Repsol executives and the Venezuelan government are also aimed at establishing mechanisms to circumvent certain restrictions imposed by the sanctions, particularly as regards the export of petroleum products.
A stronger partnership in the gas sector
In addition to its oil activities, Repsol is also focusing on the development of gas projects in Venezuela.
The Spanish company operates several sites in the east of the country, where it plans to increase natural gas production.
This strategy enables Repsol to diversify its activities and reduce its dependence on oil, while capitalizing on Venezuela’s vast gas resources.
This diversification offers considerable economic benefits for both Repsol and Venezuela, which is seeking to expand its gas exports.
The country holds some of the world’s largest gas reserves, but exploitation of these resources has been limited by sanctions and a lack of foreign investment.
For Repsol, this expansion into the gas sector represents an opportunity to strengthen its presence in Latin America, while helping to secure Venezuela’s energy supply.
These projects, though complex to implement in the current context, illustrate the company’s determination to maintain its commitment to a high-potential market.
