The deal will allow Repsol to resume control of operations of Petroquiriquire – a joint venture between PDVSA and Repsol – while expanding output and securing payment mechanisms, it said, Anadolu Agency reported.
The company is prepared to increase output by 50% within 12 months and potentially triple production over the next three years if conditions remain favorable.
Repsol currently produces around 45,000 barrels of oil per day in Venezuela.
“This agreement underlines Repsol’s commitment to Venezuela, where we have operated continuously since 1993,” Francisco Gea, the company’s director general for exploration and production, said in a statement.
Last month, Repsol and Italy’s Eni signed a separate agreement to sustain natural gas production at the Cardon IV project through 2026.
The deals follow the issuance of a US license authorizing Repsol to carry out oil and gas transactions with Venezuela and PDVSA, marking a regulatory shift after years of restrictions.
Years of sanctions and underinvestment have left the country’s oil infrastructure severely degraded, with production currently at around 800,000 barrels per day, far below its historical peak of more than 3 million.
Industry analysts estimate that restoring Venezuela’s oil sector would require tens of billions of dollars in sustained investment over the next decade.
Venezuela’s crude is largely extra-heavy, requiring complex refining processes that only a limited number of companies, including Repsol, are equipped to handle.