Two European companies that stayed when others fled
The accord allows Repsol to expand investments and increase production capacity with state oil company PDVSA under a 2026-2028 strategic plan. Cardón IV, one of Latin America's largest gas fields, currently produces 580 million cubic feet daily and will supply domestic consumption and exports.
- Cardón IV field produces 580 million cubic feet of gas daily
- Repsol aims to triple crude production to 135,000 barrels daily
- Strategic plan runs 2026-2028
- Signed by PDVSA, Repsol, and Eni this week
Venezuela's government signed an agreement with Spanish Repsol and Italian Eni to guarantee gas supply and expand hydrocarbon production, including exploitation of the Cardón IV field through 2028.
Venezuela's interim government sealed a gas supply agreement this week with two European oil companies that never left the country during its economic collapse. Repsol of Spain and Eni of Italy signed the deal with state oil company PDVSA, marking a significant restart of foreign investment in the nation's energy sector after years of international isolation.
Delcy Rodríguez, the interim president, framed the accord as vindication of the companies' loyalty. "I'm very pleased this comes from the hand of two European companies that stayed in Venezuela, that believed in Venezuela and didn't turn their backs on our people," she said during a broadcast on state television. The agreement centers on developing Cardón IV, one of Latin America's largest gas fields, which currently produces 580 million cubic feet of gas daily. The field will supply both domestic consumption and exports under a strategic plan running through 2028.
The signatories included Paula Henao, Venezuela's new hydrocarbon minister, alongside Héctor Obregón, president of PDVSA, and Gonzalo Antonio Carrillo Recalde representing both foreign firms. Repsol's leadership emphasized the company's commitment to expand operations and productive capacity alongside the state enterprise. In a separate statement, the company's chief executive Josu Jon Imaz outlined plans to restore normal operations after receiving the necessary licenses to work in Venezuela again.
Repsol's ambitions extend well beyond gas. Imaz told President Donald Trump during a White House meeting in January that the company intends to triple its crude oil production in Venezuela to roughly 135,000 barrels daily. The company plans to invest heavily in renovating production facilities, including pumps and other infrastructure that deteriorated during years of underinvestment. Gas supply to Venezuela's electrical grid will be the immediate priority, with production increases to follow.
The agreement arrives after Venezuela's parliament, controlled by Rodríguez's political allies, unanimously approved a hydrocarbon law reform in January designed to attract foreign capital. That legislative shift opened the door for companies like Repsol and Eni to expand their footprint in a country whose oil reserves are among the world's largest but whose production has collapsed from over three million barrels daily two decades ago to a fraction of that today. The deal signals that Venezuela's government believes foreign expertise and investment are essential to reversing that decline, even as the country remains isolated by much of the international community.
Notable Quotes
I'm very pleased this comes from the hand of two European companies that stayed in Venezuela, that believed in Venezuela and didn't turn their backs on our people— Delcy Rodríguez, interim president of Venezuela
Repsol is prepared to invest with force in Venezuela and to multiply by three its crude production in the country to approximately 135,000 barrels daily— Josu Jon Imaz, Repsol chief executive, speaking to President Trump in January
The Hearth Conversation Another angle on the story
Why did Repsol and Eni stay when so many other companies fled Venezuela?
They had deep roots in the country and long-term contracts. Walking away meant writing off decades of infrastructure and relationships. Staying, even at reduced capacity, kept them positioned for exactly this moment—when the government needed them back.
Is this agreement actually going to work, or is it just words on paper?
That depends on whether Venezuela can stabilize enough to honor its commitments. Repsol is betting it can. They're not sending money yet—they're restoring operations they already had. It's a lower-risk way to test the waters.
What does Trump's involvement mean here?
Repsol's CEO went to the White House to tell Trump the company was ready to invest heavily in Venezuela. That's a signal that the U.S. administration is comfortable with European oil companies operating there, which matters for sanctions and diplomatic cover.
Why does gas matter more than oil right now?
Venezuela's electrical grid is failing. Without gas to power plants, the country can't function. Oil is the long-term prize, but gas is the immediate lifeline. Repsol knows that fixing the grid first builds credibility for everything else.
What happens if this falls apart?
Repsol loses the investment it's about to make, and Venezuela's energy crisis deepens. But for Repsol, the real risk is already sunk—they've been operating there for decades. This agreement just lets them finally expand again.