Repsol seeks to maintain operations in Venezuela despite US licence revocation

Repsol’s Chief Executive said the company is exploring options with US authorities to remain active in Venezuela following Washington’s decision to end sanctions waivers.

Partagez:

Repsol is exploring alternative solutions to maintain its operations in Venezuela after the United States announced the revocation of special licences previously granted to foreign companies active in the country’s oil and gas sectors. Repsol Chief Executive Josu Jon Imaz confirmed the company’s position during an economic forum in Madrid, noting that discussions are ongoing with US authorities to evaluate legal mechanisms that would allow continued lawful activity in the country.

The Spanish company is primarily involved in natural gas extraction in Venezuela, accounting for approximately 85% of its local production. Josu Jon Imaz stated that this output supports part of the electricity system in western Venezuela. Repsol is therefore aiming to preserve this energy infrastructure while ensuring compliance with international regulatory frameworks.

Revocation of US waivers

The United States’ decision to withdraw previously granted authorisations comes amid sanctions imposed on the government of Nicolás Maduro. Venezuela, which holds the world’s largest oil reserves, has seen production decline to about 1 million barrels per day, down from 3.5 million in the early 2000s. This decrease has been attributed to poor management, corruption, and strengthened US sanctions since 2019.

Spain’s Minister for Foreign Affairs, José Manuel Albares, responded by stating that Madrid would assess the economic impact of the US measure on Spanish companies. He added that Spain would use all available diplomatic channels to maintain dialogue with US authorities.

Implications for foreign operators

French oil company Maurel & Prom confirmed it had received notice from the United States Department of the Treasury that its licence had been revoked as of 28 March. However, a transitional licence has been granted until 27 May to finalise its ongoing operations in the country. According to industry estimates, Chevron currently produces approximately 220,000 barrels per day in Venezuela, compared with 65,000 for Repsol and 20,000 for Maurel & Prom.

These new restrictions present significant challenges for foreign companies operating in Venezuela, which now face ongoing regulatory instability and increasing pressure to exit the country while trying to safeguard strategic investments.

The closure of the Grangemouth refinery has triggered a record increase in UK oil inventories, highlighting growing dependence on imports and an expanding deficit in domestic refining capacity.
Mexco Energy Corporation reports an annual net profit of $1.71mn, up 27%, driven by increased hydrocarbon production despite persistently weak natural gas prices in the Permian Basin.
S&P Global Ratings lowers Ecopetrol's global rating to BB following Colombia's sovereign downgrade, while Moody’s Investors Service confirms the group's Ba1 rating with a stable outlook.
The anticipated increase in the tax deduction rate may encourage independent refineries in Shandong to restart fuel oil imports, compensating for limited crude oil import quotas.
Petro-Victory Energy Corp. starts drilling of the AND-5 well in the Potiguar Basin, Brazil, as the first phase of an operation financed through its strategic partnership with Azevedo & Travassos Energia.
The Texan Port of Corpus Christi has completed major widening and deepening work designed to accommodate more supertankers, thus strengthening its strategic position in the US market for crude oil and liquefied natural gas exports.
BP Prudhoe Bay Royalty Trust is offering its interest in Prudhoe Bay, North America’s largest oil field, as part of its planned dissolution, assisted by RedOaks Energy Advisors for this strategic asset transaction.
CNOOC Limited’s Hong Kong subsidiary and KazMunayGas have concluded a nine-year exploration and production contract covering nine hundred and fifty-eight square kilometres in Kazakhstan, sharing investment and operations equally.
Donald Trump announced that the United States will no longer oppose Chinese purchases of Iranian oil, immediately triggering a drop in global crude oil prices and profoundly reshaping international energy trade partnerships.
Research firm S&P Global Commodity Insights lifts its outlook for the fourth straight year, betting on three point five mn barrels per day from 2025 despite lower prices.
Enbridge plans to expand its infrastructure to increase oil transportation from the American Midwest to the Gulf Coast, anticipating rising exports and addressing current market logistical constraints.
US commercial crude inventories significantly decline by 3.1 million barrels, widely surpassing initial forecasts and immediately pushing international oil prices higher.
The UK could have hydrocarbon reserves twice as large as current official estimates, according to Offshore Energies UK, highlighting the impact of fiscal policies on forecasts and the economic future of the North Sea.
Following US strikes in Iran, international energy companies partially evacuate their teams from Iraq as a precaution, while Lukoil maintains its entire personnel on southern oilfields.
Chinese independent refineries remain cautious amid rising Iranian crude prices driven by escalating Iran-Israel tensions, potentially threatening access to the strategic Strait of Hormuz.
Gazprom, affected by a historic $6.9bn loss in 2023, is offering Pakistani state-owned firm OGDCL its petroleum assets in Nigeria to strengthen its presence in Asia’s energy market, according to Pakistani sources.
Donald Trump urges control of oil prices following U.S. military action against Iranian nuclear facilities, amid escalating tensions around the strategic Strait of Hormuz, threatening to significantly impact global markets.
PermRock Royalty Trust announces a monthly distribution of $539,693 to unit holders, impacted by reduced oil volumes and prices in April, partly offset by increased natural gas sales.
Permian Basin Royalty Trust announces a reduced distribution for June due to ongoing excess costs at Waddell Ranch properties and lower volumes from Texas Royalty Properties.
Three months after starting production, Norway’s Johan Castberg oil field, located in the Barents Sea, reaches its full capacity of 220,000 barrels per day, significantly increasing energy supplies to Europe.