Global energy giant joins Chevron in major Venezuela oil push

Repsol may not be a household name in the U.S., but that could change in 2026. It’s one of Europe’s biggest oil and gas companies, and a recent decision to double down on oil and gas production in Venezuela places it in the race with Chevron to tap Venezuela’s massive 303 billion barrels in reserves.

The capture and removal of former President Nicolás Maduro in early 2026, and the subsequent easing of U.S. sanctions, have put Repsol in a strong position to leverage decades of experience producing oil and gas in Venezuela.

Although Venezuela owes it billions of dollars tied to asset seizures, Repsol CEO Josu Jon Imaz struck an optimistic tone during its February 2026 earnings call, stating the company is pivoting to an aggressive investment plan designed to triple its crude production to approximately 135,000 barrels per day within the next three years.

Repsol’s near-term goal: a 50% increase in output over the next 12 months as it leverages new U.S. Office of Foreign Assets Control (OFAC) licenses, specifically General License 49, which allows for the negotiation of new upstream contracts.

Longer term? The company is in talks with Venezuela’s transition government about acquiring additional exploration and production blocks near its existing holdings in the resource-rich Orinoco Belt and is focused on refurbishing dilapidated infrastructure to unlock stagnant reserves.

Repsol is a Spanish large-cap integrated energy player that sits a tier below the “Big Five” supermajors (Exxon, Chevron, Shell, BP, and TotalEnergies).

As of February 2026, Repsol is the 6th-largest oil and gas company in Europe by revenue, trailing the “Big Five” but ahead of major regional players such as PKN Orlen (Poland) and OMV (Austria).

Globally, it is a significant mid-tier multinational. While its market cap (approximately $24 billion) is a fraction of Chevron’s (~$300 billion), it punches above its weight in specific sectors. For example, it is a world leader in renewable fuels and was the first major oil company to commit to a “Net Zero by 2050” target.

Fast fact: Repsol produces about 550,000 barrels of oil equivalent per day, roughly one-fifth the output of a giant like Chevron.

Repsol was officially founded in 1987 as a state-owned entity to consolidate Spain’s fragmented energy sector.

Its name was actually crowdsourced; “Repsol” was originally just a popular brand of lubricant sold by its predecessor, REPESA, since 1951, but it was so well-recognized by the Spanish public that the government adopted it as the corporate name.

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Following Spain’s entry into the European Economic Community, the company underwent a massive privatization process from 1989 to 1997. It became a global powerhouse in 1999 after acquiring the Argentine firm YPF, though that relationship ended in a high-profile 2012 nationalization conflict with the Argentine government.

Repsol has a long, 33-year history in Venezuela, having entered the country in 1993. Unlike many Western peers that fled during the era of nationalizations and sanctions, Repsol (alongside Chevron and Eni) maintained a “wait and see” presence.

It operates through several joint ventures with the state-owned PDVSA, most notably in the Petroquiriquire and Petrocarabobo oil fields. Crucially, Repsol is a 50% partner in the Perla Field (Cardón IV), which is one of the largest offshore gas discoveries in Latin America’s history.

Petroquiriquire (Onshore Oil):
Stake: 40% (Joint Venture with PDVSA/CVP). Location: Operates across three fields: Quiriquire (Monagas State), Mene Grande (Zulia), and Barúa-Motatán (Trujillo). Size/Role: This is Repsol’s primary crude asset. It produces medium and heavy crude. In early 2026, the plan is to “triple production,” as Repsol just secured a 20-year extension for these fields through 2048.

Cardón IV / Perla Field (Offshore Gas):
Stake: 50% (Joint Venture with Italy’s Eni). Location: Gulf of Venezuela. Size/Role: This is one of the largest offshore gas fields in Latin America. It currently produces approximately 580 million cubic feet of gas per day. This gas is vital for Venezuela’s domestic power grid, and Repsol is currently targeting a 10% increase in output here for 2026.

Petrocarabobo (Orinoco Belt Oil):
Stake: 11% (Part of a consortium). Location: Carabobo 1 Project in the heavy oil Orinoco Belt. Size/Role: An “extra-heavy” crude project. While Repsol has a smaller stake here, it provides a strategic foothold in the region, as it holds the world’s largest reserves.

Quiriquire Profundo (Gas Exploration):
Stake: 60%. Size/Role: A dedicated license for non-associated gas exploration in the Monagas state, covering roughly 93 km².

As of 2024, Venezuela was Repsol’s second-largest market by production volume after the U.S., with 256 million boe on its books; the country accounts for 15% of the company’s total proven reserves.

Repsol had been receiving Venezuelan oil as payment for natural gas and naptha, a diluent required to pump, pipe, and process Venezuela’s sludge-like heavy oil. However, Repsol took a hit in 2025 when the Trump administration ended that relationship, leading to significant IOUs from the Venezuelan government.

While CEO Imaz is interested in getting the compensation it’s owed, that’s become a secondary effort this year.

In 2026, playing the long game is paying off. Repsol has leveraged this longevity to secure new US-approved licenses, positioning it to triple its production as the country’s energy sector reopens.

While Venezuela captures the headlines, Repsol’s most immediate production boost is actually coming from the North Slope of Alaska. In March 2026, the company is set to achieve “first oil” at its Pikka Phase 1 project.

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The Pikka project is one of the most significant U.S. oil discoveries in decades and is expected to reach a gross production of 80,000 barrels per day by the second half of the year. For investors, Alaska represents a low-risk, high-margin counterpart to the geopolitical complexities of South America.

As a result, it is a key pillar of Repsol’s strategy to concentrate assets in “Tier 1” jurisdictions while divesting from smaller holdings in Indonesia and Colombia.

For those wondering how these production jumps translate to the bottom line, Repsol’s February 2026 earnings call provided a clear answer. The company has committed to distributing approximately €1.9 billion ($2.2 billion) to shareholders this year.

This includes:

A Dividend Hike: A 7.8% increase in the cash dividend, bringing it to €1.05 per share.

Steady Buybacks: A €700 million share repurchase program to help support the stock price.

Despite the optimism, significant hurdles remain. Decades of underinvestment have left Venezuela’s energy infrastructure in a state of decay. President Trump’s White House is seeking $100 billion in oil and gas investments to capitalize on the opportunity.

“Nobody knows exactly what it takes to restore Venezuela’s power grid plus the entire energy infrastructure for pumping and distribution. We don’t know whether it’s $75 billion or $150 billion, but I think we can safely say it’s going to be a number with that many zeros,” said UC Berkeley Haas labor economist David Levine in January.

Furthermore, while CEO Imaz says recouping the $5.4 billion owed isn’t the “top priority” compared to restoring normal operations in Venezuela, the company’s success hinges on the new transition government’s ability to maintain political stability and honor new contracts. Far from guaranteed.

For now, Repsol is playing the long game—betting that being first back into the world’s largest oil reserves will eventually outweigh the risks.

In 2026, the company expects to reach between 560,000 and 570,000 barrels per day, excluding any potential increase in production in Venezuela.

In Venezuela specifically, Repsol targets 100,000 boepd in 2026, up from 71,300 in 2025 and 67,000 in 2024.

This story was originally published by TheStreet on Feb 21, 2026, where it first appeared in the Investing section. Add TheStreet as a Preferred Source by clicking here.

Global energy giant joins Chevron in major Venezuela oil push

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