Trump Administration Issues Ultimatum to Repsol Over Venezuelan Operations
Repsol and other international oil companies face a deadline to cease operations in Venezuela amid heightened U.S. sanctions.
The U.S. government, under the Trump administration, has informed international partners of the Venezuelan state oil company PDVSA, including the Spanish firm Repsol, that their permits for exporting crude oil and derivatives from Venezuela have been revoked.
Companies such as Repsol must now choose between continuing operations in Venezuela and risking severe sanctions from the U.S., or entirely withdrawing from Venezuelan oil dealings.
In addition to Repsol, other companies affected by this decision include U.S. firm Global Oil Terminals, Italian company ENI, French firm Maurel & Prom, and Indian conglomerate Reliance Industries, all of which previously received exemptions to operate with Venezuelan crude oil despite ongoing sanctions against the Venezuelan government.
The U.S. Department of the Treasury grants certain international oil and gas companies permissions and licenses to conduct specific operations in Venezuela, such as exporting PDVSA's oil, despite sanctions.
However, many of these companies had already reduced imports of Venezuelan oil following Trump's announcement of a 25% tariff on buyers of Venezuelan crude and gas.
The affected companies are required to liquidate their operations in Venezuela by the end of May 2025. This directive is part of a broader strategy by the Trump administration to isolate Venezuela amid ongoing challenges related to migration, as the Venezuelan government has begun accepting deported citizens from the U.S.
Specifically, Repsol and Maurel & Prom must terminate their operations in Venezuela before May 27, while Global Oil Terminals is obligated to conclude financial transactions with PDVSA by April 2 and settle any outstanding debts for asphalt oil purchases.
Additionally, Chevron has been granted until May 27 to end its operations in Venezuela, aimed at pressuring President Nicolás Maduro's regime for democratic reforms and to facilitate the return of Venezuelan migrants to the United States.
Repsol, along with Reliance, has a significant presence in the U.S. and had sought special authorization to operate in Venezuela to mitigate potential sanctions.
The implications of these sanctions are considerable, especially given that Venezuela exported an average of 910,000 barrels per day of crude and fuel in February 2025, slightly up from 867,000 barrels per day in January 2025.
In May 2024, Repsol had obtained a specific license from the U.S. to continue operations in Venezuela amid a tightening of American sanctions aimed at displacing Maduro.
Although these sanctions were initially relaxed in October 2023, they were reinstated in April 2024 following political developments within Venezuela, including the disqualification of opposition leader María Corina Machado.
Since then, Washington has mandated that all companies wishing to operate in Venezuela must obtain specific licenses.
Repsol, with a 40% stake in the joint venture Petroquiriquire alongside PDVSA (which holds a 60% stake), was among the first to adapt to this new requirement.
Companies such as Repsol must now choose between continuing operations in Venezuela and risking severe sanctions from the U.S., or entirely withdrawing from Venezuelan oil dealings.
In addition to Repsol, other companies affected by this decision include U.S. firm Global Oil Terminals, Italian company ENI, French firm Maurel & Prom, and Indian conglomerate Reliance Industries, all of which previously received exemptions to operate with Venezuelan crude oil despite ongoing sanctions against the Venezuelan government.
The U.S. Department of the Treasury grants certain international oil and gas companies permissions and licenses to conduct specific operations in Venezuela, such as exporting PDVSA's oil, despite sanctions.
However, many of these companies had already reduced imports of Venezuelan oil following Trump's announcement of a 25% tariff on buyers of Venezuelan crude and gas.
The affected companies are required to liquidate their operations in Venezuela by the end of May 2025. This directive is part of a broader strategy by the Trump administration to isolate Venezuela amid ongoing challenges related to migration, as the Venezuelan government has begun accepting deported citizens from the U.S.
Specifically, Repsol and Maurel & Prom must terminate their operations in Venezuela before May 27, while Global Oil Terminals is obligated to conclude financial transactions with PDVSA by April 2 and settle any outstanding debts for asphalt oil purchases.
Additionally, Chevron has been granted until May 27 to end its operations in Venezuela, aimed at pressuring President Nicolás Maduro's regime for democratic reforms and to facilitate the return of Venezuelan migrants to the United States.
Repsol, along with Reliance, has a significant presence in the U.S. and had sought special authorization to operate in Venezuela to mitigate potential sanctions.
The implications of these sanctions are considerable, especially given that Venezuela exported an average of 910,000 barrels per day of crude and fuel in February 2025, slightly up from 867,000 barrels per day in January 2025.
In May 2024, Repsol had obtained a specific license from the U.S. to continue operations in Venezuela amid a tightening of American sanctions aimed at displacing Maduro.
Although these sanctions were initially relaxed in October 2023, they were reinstated in April 2024 following political developments within Venezuela, including the disqualification of opposition leader María Corina Machado.
Since then, Washington has mandated that all companies wishing to operate in Venezuela must obtain specific licenses.
Repsol, with a 40% stake in the joint venture Petroquiriquire alongside PDVSA (which holds a 60% stake), was among the first to adapt to this new requirement.
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