A Restart Conditioned by US Sanctions
Repsol’s operations in Venezuela have been severely limited since 2025, after Washington unilaterally revoked its operating license — a decision that also affected other foreign players in the country. In February, the United States eased the oil embargo imposed in 2019 and granted licenses to Repsol and five other oil majors to operate in Venezuela. “We are preparing everything to restart and resume our operations,” Repsol chief executive Josu Jon Imaz said after the new licenses were granted. On the international stage, the debate over oil sanctions remains intense: Volodymyr Zelensky is simultaneously calling for the full reimposition of sanctions on Russian oil.
The agreement was signed by Repsol, Venezuela’s Ministry of Hydrocarbons and PDVSA. The new Venezuelan authorities, led by interim president Delcy Rodríguez, have cooperated with the administration of US President Donald Trump and introduced reforms to liberalize the sector. In March, Caracas had already signed a deal with Repsol and Italy’s Eni to strengthen a gas project in which both companies have participated since 2009. On Monday, US giant Chevron had struck a similar deal with Caracas to increase production, following a license swap with PDVSA.
A Weakened Industry with Ambitious Revival Plans
Despite holding the world’s largest proven crude oil reserves, Venezuela’s oil industry remains severely weakened after years of underinvestment, corruption and US sanctions. According to the latest report from the Organization of the Petroleum Exporting Countries (OPEC), Venezuela produced close to one million barrels per day in February, still far short of its peak of 3 million barrels per day some twenty years ago. US Energy Secretary Chris Wright estimated in February that Venezuelan oil production could increase by 30 to 40% by the end of 2026. “This agreement underscores Repsol’s commitment to Venezuela, where we have operated without interruption since 1993,” said Francisco Gea, the group’s head of exploration and production.
“We have the assets as well as the technical, operational and human capabilities in the field to increase our production in the country,” he added. The resumption of activity comes against a backdrop of global oil market disruptions from the Middle East, driven by the conflict in Iran which has contributed to rising crude prices. Venezuela’s oil wealth had been at the heart of tensions between Caracas and Washington, which imposed the 2019 embargo before progressively easing it under the new administration.