Spain’s Repsol is preparing to re-enter Venezuela following the signing of a new agreement with the Venezuelan government, outlining plans to significantly expand oil production in Venezuela. The company reportedly obtained licenses from the U.S. administration, which oversees Venezuela’s oil industry, and also reached agreements with U.S. energy companies aimed at restoring output levels. Current production stands at approximately 45,000 barrels per day, but Repsol intends to raise this sharply, targeting a 50% increase in the near term and aiming to triple volumes over the next three years. The renewed push reflects a broader effort to scale up oil production in Venezuela after years of operational limitations.
The shift follows a major political and regulatory change, as the United States selectively eased sanctions after removing President Nicolas Maduro from power and transferring him to the U.S. to stand trial for drug trafficking, effectively assuming control over Venezuela’s oil industry. This transition has opened the door for international energy companies to return and participate in rebuilding oil production in Venezuela. However, despite renewed access and investment commitments, restoring output is expected to take time. During the 1990s, Venezuela produced around 3 million barrels of crude per day, but a combination of poor management and prolonged U.S. sanctions has since caused a steep decline in production capacity.
Major oil companies are now gradually re-establishing their presence in the country, which is widely regarded as holding the world’s largest oil reserves. Chevron has already been expanding operations following the U.S. takeover, while Shell is engaged in discussions to develop gas resources. Repsol’s return marks another step in the broader revival of oil production in Venezuela, as multiple international players reposition themselves in the market. Earlier this month, Chevron finalized an asset swap agreement with PDVSA that will increase its stake in the Petroindependencia joint venture to 49%, in exchange for transferring certain gas assets to the Venezuelan state company.
At the same time, Shell confirmed earlier in the year that it intends to proceed with exploration activities at the Dragon project, an offshore gas field estimated to hold 4.5 trillion cubic feet in reserves. The development plan involves channeling the extracted gas into the company’s LNG facility in Trinidad and Tobago. These parallel developments highlight ongoing efforts by global energy firms to expand their footprint while contributing to the gradual recovery of oil production in Venezuela.
