HOUSTON, TEXAS (By Reuters, 16.Apr.2026, Words: 341) — Spain’s Repsol has reached a preliminary agreement with the Venezuelan government and state energy firm PDVSA to gain operational control of an oil joint venture in which it remains a minority stakeholder and to boost production.
Under Venezuela’s previous hydrocarbons law, all oil projects were jointly operated by PDVSA and its partners, with some companies wielding greater decision-making influence than others.
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A reform approved in January now allows foreign companies to operate oilfields independently and increase their stakes, prompting preliminary agreements aimed at securing greater operational and financial autonomy. The pacts are provisional until the oil ministry issues contract models and final agreements are signed.
Many foreign companies are seeking a stronger say in operational and financial decisions even while remaining minority partners. Firms such as Repsol want greater influence to secure repayment of billions of dollars in outstanding debt.
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Repsol’s agreement, announced on Thursday, includes plans to triple production in Venezuela within three years and to guarantee payment mechanisms, a key issue that previously prevented most joint ventures from generating cash flow because of U.S. sanctions, which are now being eased.
Venezuela holds some of the world’s largest oil reserves but suffers from dilapidated energy infrastructure.
“This agreement underscores Repsol’s commitment to Venezuela, where we have operated without interruption since 1993,” said Francisco Gea, executive managing director of exploration and production.
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“We have the assets and the technical, operational and human capacities on the ground to increase our production in the country.”
Repsol’s current gross oil production in Venezuela is around 45,000 barrels per day.
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After the U.S. in January began easing sanctions on Venezuela’s energy sector, Washington issued general licences allowing energy companies to expand or launch oil and gas projects and to help rebuild the OPEC member’s industry.
Last month, Repsol and Italy’s Eni signed agreements with Venezuela to secure gas production at the Cardon IV field, a 50-50 joint venture between the two companies.
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Reporting by Marianna Parraga, Disha Mishra and Pietro Lombardi. Editing by Emelai Sithole-Matarise and Mark Potter
