Driving Venezuela's Energy Future: A New Era of Collaboration

Strategic Alliance for Enhanced Production

A recent accord between PDVSA and Repsol marks a pivotal moment for Venezuela's energy industry. The agreement, focusing on the Petroquiriquire joint venture, is designed to substantially increase the extraction of crude oil and natural gas. This move is expected to invigorate the region's energy output and contribute to the nation's economic stability.

Key Stakeholders Forge Ahead

The signing ceremony for this landmark agreement saw the participation of prominent figures from both entities and the Venezuelan government. Notable attendees included Repsol's CEO, Josu Jon Imaz; Venezuela's Interim President, Delcy Rodríguez; Minister of Hydrocarbons, Paula Henao; PDVSA's president, Héctor Obregón; and Repsol's General Manager of Exploration and Production, Francisco Gea Pascual, underscoring the high-level commitment to this partnership.

Unlocking New Exploration Potential

According to Héctor Obregón, the President of PDVSA, this expanded agreement opens up exciting new avenues for exploration within the Petroquiriquire venture. These opportunities are anticipated to further enhance the long-term production capabilities and resource base of the joint operation.

Targeting a Significant Output Increase

The planned production increase from the Petroquiriquire joint venture is substantial, with projections indicating an additional 20,000 barrels per day of light crude. This surge would supplement the existing average daily output of approximately 40,000 barrels, marking a considerable expansion in the venture's operational capacity.

Fueling National Economic Growth

The augmented crude oil production is earmarked for processing at the Paraguana Refining Centre, located in Falcón state. This strategic allocation is expected to directly support Venezuela's refining needs and, more broadly, to stimulate economic growth across the country, as highlighted during a state television broadcast.

Pre-emptive Production Enhancement Efforts

Prior to this latest signing, Repsol had already signaled its intent in April 2026 to work with the Venezuelan Government and PDVSA to boost oil extraction at the Petroquiriquire asset. This earlier arrangement laid the groundwork for the more comprehensive agreement now in place.

Joint Venture Ownership Structure

The Petroquiriquire joint venture operates with a clear ownership structure: PDVSA holds a majority stake of 60%, while Repsol maintains the remaining 40%. This partnership model facilitates shared investment and expertise in the venture's operations.

Repsol's Current Contribution and Future Ambitions

Currently, Repsol's gross oil production in Venezuela stands at approximately 45,000 barrels per day, predominantly sourced from Petroquiriquire. The company has expressed readiness to increase its gross production by 50% within a year and potentially triple it within three years, contingent on specific conditions being fulfilled.

Expanded Concessions and Field Integration

The updated framework agreement, initially established in 2023 and revised in 2024, not only extends the operational duration of the Petroquiriquire field concessions but also incorporates the Tomoporo and La Ceiba fields. This expansion broadens the scope of the joint venture's activities.

Impact of US Regulatory Changes

These agreements have been facilitated by the issuance of General License No. 50A (GL 50A) by the US Department of the Treasury's Office of Foreign Assets Control. This license grants Repsol and its affiliates permission to conduct transactions related to oil and gas operations in Venezuela with the Venezuelan Government, PDVSA, and associated entities.

Relaxation of Sanctions and International Engagement

Following political developments involving former president Nicolas Maduro in January 2026, the US softened certain sanctions affecting Venezuela's energy sector. This included granting general licenses that permit international energy companies to engage in oil and gas operations within the country, fostering renewed international participation.

Further Collaboration in Natural Gas

In a separate development, Repsol entered into an additional agreement in March 2026 with Venezuelan authorities concerning natural gas production at Cardón IV. This operation is a 50:50 joint venture between Repsol and the Italian energy company Eni, signifying broader collaboration in Venezuela's hydrocarbon sector.