Repsol secures U.S. license to operate in Venezuela following sanctions reimposition
(Bloomberg) – Spanish driller Repsol SA obtained a license from the U.S. on Wednesday to keep operating in Venezuela after May 31, according to people with knowledge of the matter.
Oil firms that want to stay in Venezuela have been applying for permits from U.S. Treasury after Washington reimposed sanctions last month.
Repsol recently signed a deal with state-owned Petroleos de Venezuela SA that adds jointly managed fields to its operations. In the next few months, the assets are expected to produce 20,000 bpd, doubling what the European major currently produces in one of its three ventures, Chief Executive Officer Josu Jon Imaz said in a call with investors in April.
Press officials for U.S. Treasury didn’t immediately respond to a request seeking comment.
The U.S. is trying to use sanctions as leverage to ensure fairer presidential elections in July. Last year, Washington temporarily removed restrictions on Venezuela’s gold and oil sectors after the government of President Nicolás Maduro and the opposition signed a deal in Barbados on electoral guarantees.
After decades of mismanagement in its state-owned companies, ultimately hit by U.S. sanctions, Maduro’s government has given oil majors more operational control in their local joint ventures. Repsol currently has three joint ventures with PDVSA, one of them alongside Italy’s Eni SpA.
The Spanish driller has also been among the foreign oil companies delivering a string of fuel and refined products to PDVSA, helping ease years of painful gasoline shortages.
