Repsol Pledges to Triple Venezuela Oil Output After Talks with Trump, Aiming for Major Production Growth
Spanish energy giant Repsol has announced a bold commitment to triple its crude oil production in Venezuela over the next few years following strategic talks with U.S. President Donald Trump and leading oil industry executives in Washington, D.C. The pledge underscores a renewed focus on Venezuela’s vast petroleum potential and aligns with the Trump administration’s broader push to revitalize the embattled nation’s energy sector.
New Direction for Venezuelan Oil Investment
On Friday, Repsol’s CEO Josu Jon Imaz told President Trump and other top decision-makers that Repsol is ready to significantly expand its operations in Venezuela — from around 45,000 barrels per day (bpd) currently to approximately 135,000 bpd within two to three years, assuming an appropriate commercial and legal framework is established.
“We are ready to invest more in Venezuela and triple production there,” Imaz said during the meeting at the White House, highlighting the company’s technical capacity, staff presence, and ongoing operations in the country.
The proposed expansion forms part of a U.S.-led effort to draw foreign investment back into Venezuela’s oil industry, which has struggled for years under the weight of sanctions, mismanagement, and crumbling infrastructure. Trump has encouraged oil firms to consider opportunities in Venezuela’s energy sector as part of his administration’s strategy to increase global oil supply and exert geopolitical influence.
Caracas’ Untapped Resource Base
Venezuela is estimated to have the largest proven crude oil reserves in the world, holding over 300 billion barrels — largely heavy crude that requires expertise and investment to produce efficiently.
Despite this potential, crude output has languished at around 1 million bpd in recent years, a fraction of the 3+ million bpd Venezuela once delivered in the late 1990s and early 2000s. Years of underinvestment, international sanctions, and declining infrastructure have all contributed to the downward trajectory.
Repsol’s involvement includes interests in several operating units and mixed ventures with state-owned PDVSA, as well as natural gas operations such as Cardón IV, which contribute to domestic electricity generation. These assets are seen as a platform for scaling up production if political and legal conditions become favorable.
Trump’s Big Oil Agenda and Industry Response
President Trump has publicly pushed for significant industry investment in Venezuelan oil — including urging firms to mobilize as much as $100 billion to rebuild production capacity across the country’s energy infrastructure.
At the same meeting, Trump insisted on “total safety” and federal support for companies willing to invest, even as some major U.S. oil giants remain cautious. Several executives expressed hesitation to commit large sums without concrete reforms and clearer long-term legal protections.
For instance, ExxonMobil’s CEO recently described Venezuela as “uninvestable” without deep reform of legal and commercial frameworks, while Chevron signaled a more modest increase in output potential, forecasting a 50% growth over 18 to 24 months under certain conditions.
Economic and Geopolitical Stakes
Repsol’s pledge reflects a wider calculus: Venezuela’s oil sector could offer immense returns if production scales up, but the challenges are equally immense. Venezuela’s infrastructure — from fields to pipelines to port facilities — has suffered decades of neglect, requiring substantial capital to modernize and expand.
Political risk remains another crucial factor. Previous sanctions by the U.S. Treasury and other governments have limited foreign participation and complicated oil exports, while ownership disputes dating back nearly two decades — including nationalization of assets — continue to weigh on long-term investment decisions.
Nevertheless, the Trump administration is seeking to leverage Venezuela’s resources as part of broader energy and geopolitical objectives. That includes protecting Venezuelan oil revenues held in U.S. accounts and facilitating export arrangements that could supply American refineries with heavy crude.
What Repsol’s Plan Would Mean
If Repsol achieves its goal, Venezuela could see a substantial increase in oil output, with Repsol alone adding roughly 90,000 bpd beyond its current levels. This would represent a three-fold increase for the company and a significant contribution to the national oil profile — although still modest compared with former peaks.
For Repsol, Venezuela could become one of its most important production bases. The company already reported that Venezuelan operations accounted for around 15% of its total reserves measured in barrels of oil equivalent.
Economists and analysts warn that achieving such growth will require transparent governance, investment guarantees, and detailed infrastructure plans — conditions that have been historically elusive. But for Repsol and others willing to engage, the possibility of tapping into one of the world’s largest reserves presents a compelling long-term opportunity.
A Tentative Step Toward Revival
With Repsol’s commitment and Trump’s backing, Venezuela’s oil sector may be poised for a tentative recovery — but much remains uncertain. Legal frameworks, political stability, and the willingness of global investors to commit capital are all open questions.
As world markets watch closely, the next few years could redefine Venezuela’s role in the global energy landscape, with Repsol at the forefront of a potential renaissance in crude production.
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