Oil majors flock to Venezuela as exports hit seven-year high

PDVSA and Repsol Sign Oil and Gas Production Deal as Venezuela’s Energy Sector Reopens

Spain’s Repsol has signed a deal with Venezuela’s state oil company PDVSA to regain operational control of key oil assets and sharply increase production, part of a broader wave of foreign investment flowing into the country’s energy sector following the U.S.-led capture of Nicolás Maduro earlier this year.

The Repsol-PDVSA Agreement

Under the agreement, Repsol will reassume operational control of the Petroquiriquire field, a joint venture in which it holds a 40 percent stake with PDVSA retaining 60 percent. The Spanish energy company plans to increase gross production by 50 percent within 12 months and triple output over three years, provided conditions remain favorable. The deal also incorporates the Tomoporo and La Ceiba fields and establishes a payment mechanism through heavy crude cargoes equivalent to the field’s production.euronews

The arrangement is covered under General License No. 50A issued by the U.S. Treasury’s Office of Foreign Assets Control, which allows continued oil and gas operations involving PDVSA. Repsol noted the framework agreement was originally signed in 2023 and subsequently amended in 2024, with the latest terms formalizing the path toward expanded output.rigzone

Chevron, Shell, and the Broader Opening

Repsol’s deal is part of a wider push by international oil companies to secure positions in Venezuela. In April, Chevron signed two agreements to expand operations in the Orinoco Belt, including an asset swap that added a new heavy crude area to its primary project while relinquishing an offshore gas field. Shell separately signed a deal to take over operations at the Loran gas field and develop fields in the Monagas North region in eastern Venezuela.reuters

Jarrod Agen, executive director of the White House’s National Energy Dominance Council, said at Politico’s Energy Summit that Venezuela is moving from the memorandum-of-understanding phase to binding contracts.politico

Venezuela’s Production Surge

Venezuela’s oil exports hit a seven-year high of an estimated 1.25 million barrels per day in May, a 61 percent jump compared to May 2025, according to OilPrice.com. The United States became the top buyer at roughly 558,000 bpd, followed by India at 427,000 bpd. Output is targeting nearly 1.3 million bpd in 2026, with new operating licenses expected to push production toward 1.5 million bpd by 2027.oilprice

The country’s transitional government under Delcy Rodríguez has allowed U.S. companies broad access to the oil sector in exchange for sanctions relief, though a date for democratic elections has not been set.mezha