06/11  Closing Prices / revised 06/12/2024 07:53 GMT 06/11 OPEC Basket  $82.36   +$1.43 cents 06/11 Mexico Basket (MME) $72.63  +$0.43  cents  | 04/30 Venezuela Basket (Merey)   $74.91   +$3.93 cents | 06/11 NYMEX WTI Texas Intermediate July CLN24 $77.90  +$0.16 cents  | 06/11 ICE Brent August  BRNQ24    $81.92  +$0.29 cents  | 06/11 NYMEX Gasoline June RBN24  $2.40  +0.1%  |  06/11 NYMEX  Heating Oil July  RBN 24    $2.42  +0.3% | 06/11 Natural Gas July NGN24  $3.12   +7.7%  | 06/07 Active U.S. Rig Count (Oil & Gas)   594  -6  | 06/12 USD/MXN Mexican Peso   18.6503  (data live)  | 06/12 EUR/USD     1.0745 (data live)  | 06/12 US/Bs. (Bolivar)   $36.43850000 ( data BCV)

Repsol, Eni Set to Renew Oil Terms in Venezuela with Eye on Gas – Bloomberg

Contracts to give more operational control to European majors Talks seen hinging on PDVSA debt in key offshore project (Betty Laura Zapata/Bloomberg)
Contracts to give more operational control to European majors Talks seen hinging on PDVSA debt in key offshore project (Betty Laura Zapata/Bloomberg)

Fabiola Zerpa, Bloomberg News

CARACAS
EnergiesNet.com 12 17 2023

Venezuela is in advanced talks on new deals with European energy majors Repsol SA and Eni SpA as the Andean nation seeks to reassert itself as a global oil producer after the US eased sanctions.

The Spanish and Italian companies are hammering out contract terms between their oil ventures and state-owned Petróleos de Venezuela SA, according to three people familiar with the deals who aren’t authorized to speak publicly. Two of them say an agreement could be reached by the end of the year.

In return, the European majors are hoping to secure exports from a key project that has rights to the largest offshore gas field in South America. They’re also seeking more operational and finance controls from their ventures, hoping to catch up with Chevron Corp. after the US driller was granted a special license to resume production in Venezuela late last year.

Last month, Etablissements Maurel & Prom SA of France became the first European company to sign a contract with PDVSA after the Biden administration suspended sanctions in exchange for electoral guarantees from the Venezuelan government ahead of next year’s presidential vote. 

With markets thirsty to add more barrels from the country with the largest oil reserves in the world, Venezuela is expected to both expand its output and steer more of its existing production to refineries in the US. That could help contain gasoline prices stateside as President Joe Biden campaigns for reelection in 2024.

Nicolás Maduro’s regime, however, has done the bare minimum to keep up its side of the bargain with the US. It hasn’t yet released political prisoners, prompting Biden officials to assess the potential need to reimpose sanctions. Maduro is also ratcheting up tensions with neighboring Guyana, signaling his intent to grant exploration licenses in the disputed oil-rich Essequibo region after holding a referendum on annexation.

Repsol sent a negotiating team to Caracas in November for talks on the contracts and to explore new options to secure access to heavy crude for its oil refineries in Spain, two of the people said. Negotiations will likely hinge on compromises that boost production for both Repsol and PDVSA.  

The Madrid-based company also reviewed long term debt owed by PDVSA for oil and gas sales. This includes debt accrued by PDVSA on natural gas sales from the offshore Cardon IV venture that Repsol runs in equal partnership with Rome-based Eni. The project satisfies nearly a third of Venezuela’s natural gas demand, according to Ruben Perez, director at Chemstrategy, an energy consultancy in Caracas. 

Eni runs five oil ventures in Venezuela, while Repsol operates four. PDVSA has more than 40 oil partnerships with foreign and local companies, some of whom have suspended activity due to the difficult business climate. 

bloomberg.com 12 06 2023

Share this news

Support EnergiesNet.com

By Elio Ohep · Launched in 1999 under Petroleumworld.com

Information & News on Latin America’s Energy, Oil, Gas, Renewables, Climate, Technology, Politics and Social issues

Contact : editor@petroleuworld.com


CopyRight©1999-2021, EnergiesNet.com™  / Elio Ohep – All rights reserved
 

This site is a public free site and it contains copyrighted material the use of which has not always been specifically authorized by the copyright owner.We are making such material available in our efforts to advance understanding of business, environmental, political, human rights, economic, democracy, scientific, and social justice issues, etc. We believe this constitutes a ‘fair use’ of any such copyrighted material as provided for in section 107 of the US Copyright Law. In accordance with Title 17 U.S.C. Section 107, the material on this site is distributed without profit to those who have chosen to view the included information for research, information, and educational purposes. For more information go to: http://www.law.cornell.edu/uscode/17/107.shtml. If you wish to use copyrighted material from this site for purposes of your own that go beyond ‘fair use’, you must obtain permission fromPetroleumworld or the copyright owner of the material.

 
 

1 thought on “Repsol, Eni Set to Renew Oil Terms in Venezuela with Eye on Gas – Bloomberg”

  1. Pingback: PDVSA and Repsol Sign Deal to Renew Oil Terms – Bloomberg - EnergiesNet

Comments are closed.

Scroll to Top