Repsol has strengthened its position in Venezuela through a newly signed memorandum of understanding with the country’s Ministry of Hydrocarbons and state-owned oil company Petróleos de Venezuela (PDVSA). The agreement is centered on evaluating the development prospects of the Horcón area, situated southeast of Lake Maracaibo. The Horcón area exploration initiative focuses on a newly identified zone located between the Barúa and Motatán fields, both of which are already linked to Repsol’s established operations in Venezuela. Through the Horcón area exploration effort, the company seeks to expand its upstream activities and identify additional production opportunities within one of the nation’s key hydrocarbon-producing regions.
The agreement was formalized in Caracas during a meeting attended by Repsol Chief Executive Officer Josu Jon Imaz, senior Venezuelan government officials and PDVSA executives.
Comprehensive Review of Operations and Development Plans
During the discussions, the parties not only addressed the Horcón area exploration program but also reviewed the status of existing projects, investment obligations, payment mechanisms and crude shipment schedules.
In addition to oil-related opportunities, Repsol, PDVSA and the Ministry of Hydrocarbons expressed interest in conducting further studies on offshore gas reservoirs and assessing future development possibilities. These efforts are consistent with Repsol’s broader objective of growing its natural gas business while supporting long-term energy security. Further exploration and feasibility work may create additional production opportunities and reinforce Venezuela’s position as a regional gas supplier.
Building on Recent Operational Achievements
Multiple Ventures Drive Growth Momentum
The latest memorandum follows a series of agreements reached between Repsol and Venezuelan authorities during 2026. Earlier in the year, Repsol and Eni reached an agreement to support sustainable natural gas production at the Cardón IV asset, which is jointly owned by the two companies. In April 2026, Repsol also secured an arrangement enabling it to regain operational control and increase production at Petroquiriquire, a joint venture where PDVSA owns 60% and Repsol holds the remaining 40%. The agreement is intended to improve operational efficiency while supporting reliable payment mechanisms and a stronger regulatory framework. According to PDVSA, the latest developments at Petroquiriquire introduce new exploration opportunities that could substantially raise production levels. Company officials estimate output may increase by approximately 20,000 barrels per day, moving from around 40,000 barrels per day to roughly 60,000 barrels per day. The additional crude is expected to support operations at Venezuela’s Paraguana Refining Center and contribute to broader economic activity.
Repsol currently produces roughly 45,000 barrels of oil per day in Venezuela and has indicated that output could rise by as much as 50% within the next year. Over a three-year period, production could potentially triple if operational and regulatory conditions remain favorable. Supporting these initiatives is a more accommodating regulatory environment. The U.S. Treasury Department’s Office of Foreign Assets Control issued General License 50A, allowing Repsol and its subsidiaries to conduct oil and gas transactions with the Venezuelan government and PDVSA. This shift has provided international energy companies with greater flexibility to operate in the country, enabling Repsol to pursue new investments, expand production plans and reinforce its long-term presence.
Implications of Horcón area exploration success for Repsol
With more than three decades of uninterrupted operations in Venezuela, the company continues to advance Horcón area exploration, expand production objectives and evaluate offshore gas opportunities. If successful, the Horcón area exploration program and related projects could significantly enhance Repsol’s production capacity while supporting the revitalization of Venezuela’s oil and gas sector and strengthening cooperation with Venezuelan authorities.
