Repsol will be able to export Venezuelan crude to Europe without exposure to US sanctions

Repsol and Italy's ENI are the companies that will benefit most from being able to sell their Venezuelan assets without hindrance or sanctions, and will resume sending oil to Europe in the coming weeks, probably in July. This decision puts an end, although it is not known whether it is provisional, to the reinforcement of the sanctions approved by the previous president of the United States, Donald Trump.

The war in Ukraine is almost radically changing the world energy scenario, the key objective now being to reduce Europe's dependence on Russia for raw materials such as coal, oil and gas. With this goal in mind, US President Joe Biden has taken another step to bring Venezuela, another important oil producing and exporting country, into the world market with more capacity.

Biden is also prioritising an increase in supply to reduce prices and bring more stability to a volatile market. Washington's current strategy has been confirmed by the Venezuelan president, Nicolás Maduro, who stressed that the two European oil companies are authorised to exploit their gas and oil fields in the Caribbean country. In this way, they will not only be able to export without the risk of sanctions, but will also increase their respective capacities to increase the power of their assets.

The White House announced weeks ago that it was relaxing the oil companies' operations, albeit with certain conditions, one of which is that exports must be destined for what are considered to be the natural markets of these groups: Europe, and they may not be diverted to customers such as China. It also requires that payments be made in exchange for the accumulated debt.

The Democratic president has faced criticism at home for this policy that benefits Maduro, although he has used this strategy to hold talks with the government in Caracas and managed to secure the release of US citizens who were imprisoned in Venezuela.

Repsol began its development in Venezuela in 1993 with a priority objective: to strengthen its position in hydrocarbon exploration and production with projects in different areas of the country. They have produced light and medium crude, associated and non-associated gas. In offshore gas, the Perla Field, the crude oil development projects in Petrocarabobo, as well as the exploration and exploitation of gaseous hydrocarbons in the Quiriquire block stand out.

This year it has declared an exposure of 2,273 million euros in 2016, which it reduced to 1,480 million in 2017 and so on: 456 million in 2018, 239 million in 2019, 320 million in 2020 and 298 million at the end of 2021.