By Nina Kienle

Spain's Repsol said it would regain control of its operations in Venezuela, paving the way for an output increase in the oil-rich country.

Repsol said Thursday that it signed an agreement with the Venezuelan government and state-owned oil company PDVSA to retake operational control of the Petroquiriquire oil field and take steps toward increasing production.

President Trump and officials in his administration have urged Venezuela's interim government and companies to rebuild the country's oil-and-gas industry and restore production since a U.S. incursion into Caracas in January led to the capture of former President Nicolas Maduro.

The Treasury Department in February issued a general license allowing companies including Chevron, Shell, BP, Eni and Repsol to invest in new oil-and-gas operations in Venezuela, weeks after the country's interim government amended its hydrocarbons law to ease state control of the industry.

Repsol said its agreement falls within the scope of the U.S. general license.

In contrast to other oil producers that stayed out of Venezuela for the past two decades and are now reluctant to return, Repsol has operated in the country since 1993 and has previously signaled it is willing to increase its output there under certain conditions.

Petroquiriquire accounts for most of the Spanish company's gross oil output in Venezuela, which currently amounts to about 45,000 barrels a day, it said. PDVSA holds a 60% stake in the field, and Repsol holds 40%.

Repsol said it is prepared to increase its oil production by 50% within a year and triple it in the next three years, reinvesting funds generated in the country as long as the necessary conditions remain in place.

"We have the assets and the technical, operational, and human capacities on the ground to increase our production in the country," Repsol's executive managing director of exploration and production, Francisco Gea, said.

The agreement with the Venezuelan government and PDVSA also looks to guarantee payment mechanisms and strengthen the framework for operations in the country, Repsol said.

Repsol disclosed in its 2025 annual report that Venezuela owed it 4.55 billion euros ($5.37 billion), including late-payment interest on commercial debt and funding for Petroquiriquire.

Last month, Repsol and Eni signed another agreement with the Venezuelan authorities to ensure the continuity of natural-gas production throughout 2026.

Chevron earlier this week said it would swap some of its oil and gas holdings in the country with PDVSA as the U.S. oil major said it aims to double down on extra-heavy oil production.

Write to Nina Kienle at nina.kienle@wsj.com

(END) Dow Jones Newswires

April 16, 2026 07:20 ET (11:20 GMT)

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