Venezuela has ramped up its oil exports to Spain, marking one of the highest shipments in the past two decades.

The state-owned Petróleos de Venezuela, S.A. (PDVSA) has delivered over three million tonnes of crude oil to Spanish ports over the last year.

This mirrors peak levels reached in 2015, 2014, and 2006, according to official statistics.

Industry sources highlight that nearly all the imported crude arrives via the ports of Bilbao, Cartagena, and Tarragona, and is destined for Repsol, which processes the heavy crude at its refineries.

These deliveries reportedly occur as a form of in-kind payment to settle the outstanding debts of the Venezuelan government with Repsol.

The Spanish company, led by CEO Josu Jon Imaz, has been actively operating in Venezuela since 1993.

The shipment volume exceeding three million tonnes to Spain by November 2024 represents more than double the previous year's intake.

Data from the Corporación de Reservas Estratégicas de Productos Petrolíferos (CORES), under the Ministry for the Ecological Transition, shows a nearly 120% increase from 2023 to 2024. Venezuela ranks as the seventh-largest oil supplier to Spain globally, contributing almost 5% of its imported crude.

This increase in oil imports comes amid political uncertainty in Venezuela.

President Nicolás Maduro has recently renewed his term without providing electoral results to substantiate his victory in the July 2024 elections.

The international community, based on observations from organizations such as the Carter Center, widely regards the elections as undemocratic.

The legitimacy of Maduro's presidency is questioned by the United States, European Union, and numerous countries worldwide, raising concerns about potential economic sanctions against Caracas.

Repsol's receipt of Venezuelan oil corresponds to two factors.

Firstly, as reimbursement for Venezuela's historical debt with the Spanish company, and secondly, as compensation for Repsol's ongoing operations in the country.

Repsol extracts gas vital for its combined cycle power stations, which are essential for its electrical system, indicating a symbiotic relationship with Venezuela.

The potential implications of Maduro's entrenched position remain a concern for foreign companies operating in Venezuela, particularly with the looming presidency of Donald Trump in the United States.

There is speculation that the Republican leader could intensify international sanctions in response to Venezuela's socialist regime.

Nevertheless, certain sector experts suggest that ramping up sanctions may lead PDVSA to divert its oil shipments currently directed to Spain, Italy, or the USA, through companies like Repsol, ENI, or Chevron, to countries allied with Venezuela such as Russia, China, or Iran.

Repsol acknowledges the geopolitical risk posed by Venezuela in its financial statements.

There have been significant periods recently when no crude shipments were received from PDVSA, notably from late 2020 until mid-2022.

In 2024, Repsol reported a total equity exposure in Venezuela amounting to 467 million euros.

This figure primarily includes financing provided to its Venezuelan subsidiaries, investment in the Cardón IV project, and accounts receivable from PDVSA.

On May 21, 2024, the U.S. Office of Foreign Assets Control (OFAC) granted a specific license allowing various Repsol Group companies to continue operating in Venezuela within a framework of security and stability for business development.

Repsol reported an average oil production of 65 thousand barrels of oil equivalent per day in Venezuela during the first half of 2024, up from 60.8 thousand barrels in the same period of 2023.

On April 17, 2024, Repsol announced an agreement with PDVSA ensuring Petroquiriquire received two new oil fields as settlement of PDVSA's historic commercial debt up to December 2023. Furthermore, both parties agreed to extend the license term for Petroquiriquire’s fields until 2046.