Repsol Gains Operational Control in Venezuela: A New Era for Oil Production

Spain's Repsol has secured a preliminary deal with Venezuela to gain operational control of an oil joint venture, aiming to boost production. Following a legal reform, foreign companies can now operate more autonomously. Repsol plans to triple production and guarantee payment mechanisms amid eased U.S. sanctions.

Spain's Repsol has struck a preliminary deal with Venezuela, granting it operational control of an oil joint venture where it is a minority stakeholder, with aims to significantly boost production.

The agreement follows a legal reform that permits foreign companies to independently operate oilfields and expand their stakes, with many firms now seeking more control in both operational and financial decision-making.

The U.S. recently eased sanctions on Venezuela's energy sector, allowing energy firms to expand, prompting Repsol and Italy's Eni to sign deals to secure gas production. Repsol plans to triple its Venezuelan output within three years.

(With inputs from agencies.)