Spanish oil company Repsol and Italy’s Eni will begin shipping Venezuelan oil to Europe as early as July, five people familiar with the matter told Reuters. This will resume the oil-for-debt swaps, which were suspended two years ago, when Washington intensified sanctions against Venezuela. The oil from Venezuela is intended to help Europe ease its dependence on Russian crude.
The president of Venezuela, Nicolás Maduro, confirmed in a televised press conference that the United States had authorized Chevron, Eni and Repsol to exploit their gas and oil deposits in Venezuela. “Steps are being taken, the first steps. About a week ago, the United States took small but significant steps by granting licenses to the US company Chevron, the Italian company ENI and Repsol,” he said. But while Chevron has been allowed to resume operation in the country, it has not yet been authorized to export oil to the US. The change in position comes after the US authorized European oil companies to operate in Venezuela in a bid to promote dialogue between Maduro and Venezuelan opposition groups. The green light from Washington to resume flows of oil from Venezuela to Europe could provide a symbolic boost for Maduro. US authorities communicated the news to the companies last month, but the details and the resale restrictions had not been communicated until now. The administration of US President Joe Biden hopes that Venezuelan crude oil will help Europe reduce its dependence on Russia and redirect some of Venezuela’s cargoes from China. The volume of oil expected to be supplied by Eni and Repsol from Venezuela is not large, according to one of the sources, who said that any impact on world oil prices will be modest. Eni and Repsol did not respond to requests for comment. Repsol’s financial exposure to Venezuela at the end of 2021 amounted to €298 million. According to the Spanish company’s 2021 financial statements, this amount includes: “the US dollar financing granted to the joint ventures Cardon IV, S.A. and Petroquiriquire, S.A., amounting to €166 million and €304 million, respectively, and trade receivables from [Venezuelan state-owned oil company PDVSA] Petróleos de Venezuela, S.A. amounting to €344 million [...] less provisions for liabilities and charges amounting to €500 million.”
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