Trump Cancels Oil Export Permits for Repsol and Other Companies in Venezuela
The U.S. administration revokes licenses for oil companies, heightening tensions over Venezuela's economic situation.
The President of the United States, Donald Trump, has notified partners of the Venezuelan state oil company PDVSA, including the Spanish firm Repsol, that their licenses to export crude oil and derivatives from Venezuela are revoked.
Alongside Repsol, other affected companies include U.S.-based Global Oil Terminals, Italian firm Eni, French company Maurel & Prom, and Indian conglomerate Reliance Industries, all of which had received permissions to operate with Venezuelan crude in their global refineries as an exception under sanctions against the Maduro government.
These licenses were initially granted during Democratic President Joe Biden's term (2021-2025).
Following Trump's announcement this week of a 25% tariff on buyers of Venezuelan crude and gas, most of these companies had already suspended imports of Venezuelan oil.
Repsol and Reliance, which have significant operations in the United States, had sought authorization to operate in Venezuela to avoid sanctions.
Venezuelan President Nicolás Maduro responded by asserting that the U.S. is the country losing from this decision, declaring, "Venezuela is a free country.
We are not anyone's colony.
No one comes to humiliate us, to belittle us.
No one is anyone.
No, that time is over." Maduro expressed the desire for Venezuela to have "civilized relations, built on respect and cooperation."
Repsol's exposure in Venezuela amounts to €467 million.
In 2016, Repsol and PDVSA agreed on a credit line of up to $1.2 billion to finance joint operations.
The outstanding balance on this line, exclusive of interest, is $634 million.
In 2024, Repsol recovered $166 million as part of the repayment of this debt.
Due to geopolitical risks and uncertainty in Venezuela, Repsol has increased its provisions for default risk, reaching €601 million in 2024.
Payments to Repsol for this debt are not in cash; instead, the company receives Venezuelan oil as compensation.
This arrangement has been authorized by the U.S. Office of Foreign Assets Control (OFAC), allowing Repsol to amortize its debt through crude deliveries.
Companies have until the end of May to liquidate their operations in Venezuela, intensifying the Trump administration's campaign to isolate the country amid a broader immigration crisis.
Washington has accused Caracas of refusing to accept the deportation of its citizens from the U.S. However, Venezuelan authorities have countered this claim.
Reports indicate that a U.S. plane carrying 175 deported Venezuelan migrants arrived at Simón Bolívar International Airport in Maiquetía this Sunday.
According to Maduro's administration, this is 54 fewer individuals than expected, attributing the discrepancy to "major disorganization" among U.S. authorities.
Interior Minister Diosdado Cabello stated that among those deported is a person "significant to Venezuelan justice," clarifying that this individual is not linked to the criminal organization Tren de Aragua but holds a notable position in a gang in the Trujillo state.
In prior announcements, Trump also revoked a key license granted to U.S. company Chevron to operate in Venezuela, necessitating the dismantling of its facilities in the nation.
In addition, Trump issued an executive order this week that will impose the announced 25% tariff on any country that purchases Venezuelan oil.
In February, Venezuela exported 910,000 barrels per day of crude and fuel, an increase from 867,000 barrels in January.
Alongside Repsol, other affected companies include U.S.-based Global Oil Terminals, Italian firm Eni, French company Maurel & Prom, and Indian conglomerate Reliance Industries, all of which had received permissions to operate with Venezuelan crude in their global refineries as an exception under sanctions against the Maduro government.
These licenses were initially granted during Democratic President Joe Biden's term (2021-2025).
Following Trump's announcement this week of a 25% tariff on buyers of Venezuelan crude and gas, most of these companies had already suspended imports of Venezuelan oil.
Repsol and Reliance, which have significant operations in the United States, had sought authorization to operate in Venezuela to avoid sanctions.
Venezuelan President Nicolás Maduro responded by asserting that the U.S. is the country losing from this decision, declaring, "Venezuela is a free country.
We are not anyone's colony.
No one comes to humiliate us, to belittle us.
No one is anyone.
No, that time is over." Maduro expressed the desire for Venezuela to have "civilized relations, built on respect and cooperation."
Repsol's exposure in Venezuela amounts to €467 million.
In 2016, Repsol and PDVSA agreed on a credit line of up to $1.2 billion to finance joint operations.
The outstanding balance on this line, exclusive of interest, is $634 million.
In 2024, Repsol recovered $166 million as part of the repayment of this debt.
Due to geopolitical risks and uncertainty in Venezuela, Repsol has increased its provisions for default risk, reaching €601 million in 2024.
Payments to Repsol for this debt are not in cash; instead, the company receives Venezuelan oil as compensation.
This arrangement has been authorized by the U.S. Office of Foreign Assets Control (OFAC), allowing Repsol to amortize its debt through crude deliveries.
Companies have until the end of May to liquidate their operations in Venezuela, intensifying the Trump administration's campaign to isolate the country amid a broader immigration crisis.
Washington has accused Caracas of refusing to accept the deportation of its citizens from the U.S. However, Venezuelan authorities have countered this claim.
Reports indicate that a U.S. plane carrying 175 deported Venezuelan migrants arrived at Simón Bolívar International Airport in Maiquetía this Sunday.
According to Maduro's administration, this is 54 fewer individuals than expected, attributing the discrepancy to "major disorganization" among U.S. authorities.
Interior Minister Diosdado Cabello stated that among those deported is a person "significant to Venezuelan justice," clarifying that this individual is not linked to the criminal organization Tren de Aragua but holds a notable position in a gang in the Trujillo state.
In prior announcements, Trump also revoked a key license granted to U.S. company Chevron to operate in Venezuela, necessitating the dismantling of its facilities in the nation.
In addition, Trump issued an executive order this week that will impose the announced 25% tariff on any country that purchases Venezuelan oil.
In February, Venezuela exported 910,000 barrels per day of crude and fuel, an increase from 867,000 barrels in January.
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