“and triple production there in the next two or three years,” Josu Jon Imaz, CEO of Repsol, told Donald Trump at the White House a couple of months ago. Then the American president had summoned the top executives of the world’s oil majors to dismiss them after decades of mismanagement and poor investment.
This Thursday, Repsol has taken another step. The Spanish energy company, chaired by Antonio Brufau, has signed a “strategic agreement” with the interim Government of Venezuela, according to a statement released by the Executive of President Delcy Rodríguez and reported by Reuters.
The interim president explained on state television that the agreement will allow gas production in Cardón IV, the joint venture that Repsol maintains with the Italian company Eni. The agreement supports domestic consumption and will allow its expansion for export. “In this way, Venezuela follows the path of becoming a gas carrier country,” said Rodríguez during the signing of the agreement.
“I am very pleased that this is being done hand in hand with two European companies that stayed in Venezuela, that believed in Venezuela and did not turn their backs on our people,” Rodríguez said.
The official statement emphasizes that the Venezuelan government is committed to seeking agreements with international investors so that resources flow again and increase the exploitation and production of oil and gas. Rodríguez told the representatives of Repsol and Eni that they can count on Venezuela to “continue delving into future projects and that this translates into shared benefit for our countries,” said the Venezuelan president.
Repsol has had a historic presence in Venezuela for more than 30 years, with the La Perla field and others.
The agreement comes just a month after Washington lifted some sanctions and the license to exploit its oil and gas businesses in Venezuela. The United States Office of Foreign Assets Control lifted the restrictions in mid-February and allowed Repsol and other global oil companies to carry out transactions related to operations in the oil and gas sector.
Venezuela has one of the largest oil reserves in the world, but it has an infrastructure that is neglected and in poor condition, with frequent fires and low productivity due to lack of investment.
The situation of the Venezuelan industry seems to change after the last January 3. The new scenario, with Washington protecting oil trade, has eased sanctions on the energy sector. The Delcy Rodríguez Government has begun approving general licenses that allow foreign companies to operate oil and gas projects.
“We are a Spanish company, but we are totally committed to investing in the United States. Over the last 15 years, we have invested $21 billion in the American oil and gas industry,” Imaz commented two months ago at the White House.
“We are in and we produce the gas that guarantees the stability of half of the Venezuelan electrical grid. So we are committed to this stability. We have personnel, facilities and technical capabilities. We are ready to invest more in Venezuela today. We are producing 45,000 gross barrels per day, and we are ready to triple this figure in the next two or three years, investing heavily in the country,” the executive added, addressing Trump.
The Spanish company already anticipated a week ago in the presentation of its strategic plan its desire to have more presence in the Latin American country. He explained that his investment projections until 2028 “where the company has a privileged position due to its historical presence, and where the new licenses issued by the US authorities allow oil and gas operations to resume in the Caribbean country.”
The Spanish Minister of Economy, . A few months ago he explained that Repsol is “a strategic company in Venezuela.” He recalled that the Spanish oil company exploits the La Perla natural gas field together with the Italian company Eni, a project “essential for the stability of the electricity supply in the Latin American country.” Body added: “Therefore, they are companies not only with a long history in Venezuela, but also structurally important for the country and that, of course, are playing a role now for its stability and will also play a role in the future.”
