Spanish energy company Repsol and Venezuela’s state-owned oil company PDVSA have signed a new agreement aimed at increasing crude oil and natural gas production in northwestern Venezuela, as the country continues efforts to rebuild output and attract investment into its energy sector.
The agreement focuses on the eastern shore of Lake Maracaibo, where the two companies already operate through the Petroquiriquire joint venture. According to PDVSA President Héctor Obregón, the project could add approximately 20,000 barrels per day of light crude production to current output levels of around 40,000 barrels per day from the area. The additional volumes are expected to supply Venezuela’s Paraguaná Refining Center. According to Reuters, the agreement is part of broader efforts to increase production from existing assets.
The latest agreement follows a separate deal signed in April under which Repsol regained operational control of the Petroquiriquire asset and outlined plans to increase its Venezuelan production. At the time, Repsol said it was prepared to raise gross oil production in the country by 50% within 12 months and potentially triple production over the next three years, subject to operational and commercial conditions remaining in place. Current gross production from Repsol’s Venezuelan operations is approximately 45,000 barrels per day, according to company statements.
The companies are also advancing plans beyond existing producing fields. On June 17, Repsol announced it had signed a memorandum of understanding with Venezuela’s Ministry of Hydrocarbons and PDVSA to assess the development of the Horcón area, located southeast of Lake Maracaibo. The parties also agreed to study additional offshore gas opportunities in Venezuelan waters, according to Repsol.
These deals reflect growing activity in Venezuela’s oil and gas industry. In recent weeks, PDVSA has also signed agreements with Shell related to the Loran gas field and with oilfield services company SLB to support modernization efforts across the country’s upstream sector, according to Reuters.