U.S. Revokes Oil Export Licenses for Repsol and Other Companies from Venezuela
The Trump administration's decision intensifies pressure on Nicolás Maduro's regime by ending export permissions.
The U.S. government has revoked export licenses for Repsol and several other oil companies associated with Venezuela's state-owned PDVSA, further tightening the sanctions against Nicolás Maduro's government.
Repsol, a Spanish multinational, had previously produced an average of 67 million barrels of oil daily in Venezuela, holding a financial exposure of 504 million euros to the country.
The U.S. is a significant market for Repsol, accounting for approximately 4% of its overall revenue.
In addition to Repsol, affected companies include U.S.-based Global Oil Terminals, Italy's Eni, France's Maurel & Prom, and India’s Reliance Industries.
These companies had received permissions from the former administration of President Joe Biden to operate with Venezuelan crude at their refineries worldwide, despite existing sanctions.
Eni confirmed receipt of the U.S. notification canceling its export licenses from Venezuela.
The Italian energy giant stated it continues to engage in open discussions with U.S. authorities to identify ways to ensure that non-sanctioned gas supplies, crucial for the Venezuelan population, can be paid for by PDVSA.
Eni affirmed its compliance with international sanctions frameworks.
Recently, President Trump announced a 25% tariff on all countries importing Venezuelan oil and gas, including Spain.
Reports indicate that most oil companies had already halted production in Venezuela, although Repsol and Reliance have sought authorization to continue operations in the country.
Companies have until the end of May to wind down their activities in Venezuela, signaling a strategic escalation by the Trump administration to isolate the Venezuelan government.
In February, Venezuela exported an estimated 910,000 barrels per day, an increase from 867,000 barrels in January.
In its reports for 2024, Repsol highlighted a signed agreement with PDVSA in 2023 to boost production and facilitate debt payments linked to joint assets without necessitating additional investments from the Spanish firm.
The company's exposure to the Venezuelan market is cited as a risk factor by its auditor in the 2024 financial statement.
The report also noted that the U.S. terminated a general license allowing oil companies to operate in Venezuela in April 2023 but granted a special waiver to Repsol to continue operations, which has now been revoked, as indicated by a letter from the White House.
A spokesperson for Repsol declined to comment on the matter.
Repsol has significantly increased its business dealings with Venezuela in recent months, receiving over three million tons of crude from PDVSA in 2024, which is double the amount received the previous year.
This marks one of the highest levels of oil procurement from Venezuela in two decades, comparable to figures from 2015, 2014, and 2006.
Additionally, Repsol has acknowledged the shifting dynamics following Trump's election victory last November.
The firm reported a high level of uncertainty regarding future U.S. foreign policy toward Venezuela and stated it is taking necessary measures to operate in compliance with applicable international sanctions, including U.S. policies concerning Venezuela.
Weeks prior to this decision, Trump also revoked a critical license previously granted to U.S. oil company Chevron to operate in Venezuela, mandating the dismantling of its facilities in the country.
Recently, the U.S. Treasury Department extended a deadline for Chevron to conclude its operations with PDVSA, pushing the initial deadline of April 3 to May 27 to allow the company to fulfill prior commitments.
In this latest move, Trump issued an executive order implementing the 25% tariff on any country purchasing Venezuelan oil.
These new measures increase pressure on Maduro, who was sworn in for another term on January 10, despite accusations of significant electoral fraud in the July elections.
The U.S., the EU, and various allies in Latin America contend that the genuine winner was opposition leader Edmundo González Urrutia.
Trump has also criticized the Maduro regime for its lack of progress concerning the repatriation of irregular Venezuelan migrants intercepted in the U.S., accusing it of sending thousands of members from the Tren de Aragua gang—a group designated as a foreign terrorist organization—into the United States.
Approximately a quarter of the Venezuelan population, nearly eight million people, have fled the country over the past twelve years to escape the repression and economic crisis under the Maduro regime, with many settling in other Latin American countries.
According to the most recent census, nearly one million Venezuelans reside in the United States.
Repsol, a Spanish multinational, had previously produced an average of 67 million barrels of oil daily in Venezuela, holding a financial exposure of 504 million euros to the country.
The U.S. is a significant market for Repsol, accounting for approximately 4% of its overall revenue.
In addition to Repsol, affected companies include U.S.-based Global Oil Terminals, Italy's Eni, France's Maurel & Prom, and India’s Reliance Industries.
These companies had received permissions from the former administration of President Joe Biden to operate with Venezuelan crude at their refineries worldwide, despite existing sanctions.
Eni confirmed receipt of the U.S. notification canceling its export licenses from Venezuela.
The Italian energy giant stated it continues to engage in open discussions with U.S. authorities to identify ways to ensure that non-sanctioned gas supplies, crucial for the Venezuelan population, can be paid for by PDVSA.
Eni affirmed its compliance with international sanctions frameworks.
Recently, President Trump announced a 25% tariff on all countries importing Venezuelan oil and gas, including Spain.
Reports indicate that most oil companies had already halted production in Venezuela, although Repsol and Reliance have sought authorization to continue operations in the country.
Companies have until the end of May to wind down their activities in Venezuela, signaling a strategic escalation by the Trump administration to isolate the Venezuelan government.
In February, Venezuela exported an estimated 910,000 barrels per day, an increase from 867,000 barrels in January.
In its reports for 2024, Repsol highlighted a signed agreement with PDVSA in 2023 to boost production and facilitate debt payments linked to joint assets without necessitating additional investments from the Spanish firm.
The company's exposure to the Venezuelan market is cited as a risk factor by its auditor in the 2024 financial statement.
The report also noted that the U.S. terminated a general license allowing oil companies to operate in Venezuela in April 2023 but granted a special waiver to Repsol to continue operations, which has now been revoked, as indicated by a letter from the White House.
A spokesperson for Repsol declined to comment on the matter.
Repsol has significantly increased its business dealings with Venezuela in recent months, receiving over three million tons of crude from PDVSA in 2024, which is double the amount received the previous year.
This marks one of the highest levels of oil procurement from Venezuela in two decades, comparable to figures from 2015, 2014, and 2006.
Additionally, Repsol has acknowledged the shifting dynamics following Trump's election victory last November.
The firm reported a high level of uncertainty regarding future U.S. foreign policy toward Venezuela and stated it is taking necessary measures to operate in compliance with applicable international sanctions, including U.S. policies concerning Venezuela.
Weeks prior to this decision, Trump also revoked a critical license previously granted to U.S. oil company Chevron to operate in Venezuela, mandating the dismantling of its facilities in the country.
Recently, the U.S. Treasury Department extended a deadline for Chevron to conclude its operations with PDVSA, pushing the initial deadline of April 3 to May 27 to allow the company to fulfill prior commitments.
In this latest move, Trump issued an executive order implementing the 25% tariff on any country purchasing Venezuelan oil.
These new measures increase pressure on Maduro, who was sworn in for another term on January 10, despite accusations of significant electoral fraud in the July elections.
The U.S., the EU, and various allies in Latin America contend that the genuine winner was opposition leader Edmundo González Urrutia.
Trump has also criticized the Maduro regime for its lack of progress concerning the repatriation of irregular Venezuelan migrants intercepted in the U.S., accusing it of sending thousands of members from the Tren de Aragua gang—a group designated as a foreign terrorist organization—into the United States.
Approximately a quarter of the Venezuelan population, nearly eight million people, have fled the country over the past twelve years to escape the repression and economic crisis under the Maduro regime, with many settling in other Latin American countries.
According to the most recent census, nearly one million Venezuelans reside in the United States.
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