Venezuela has formalised “strategic agreements” with Spanish energy company Repsol to boost gas production, according to a statement released by the South American nation’s government, reported Reuters.
During a broadcast on state television, acting Venezuelan President Delcy Rodriguez announced that the agreements aim to enhance gas production and facilitate future exports at Cardon IV. This block is a joint operation shared equally by Repsol and Italian oil and gas operator Eni.
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Located in the Gulf of Venezuela, the Cardon IV concession includes the Perla field, reputed to be one of the largest offshore gas reserves in Latin America. Presently, Perla is said to be producing 580 million cubic feet per day (mcf/d).
Production from the Perla gas field began in July 2015. The field has an estimated 17 trillion cubic feet of gas in place, which equates to 3.1 billion of barrels of oil equivalent, with further potential.
Rodriguez stated that the agreements with Repsol would also pave the way for expanded export opportunities.
She said: “I am very pleased that this is being done hand in hand with two European companies that stayed in Venezuela, that believed in Venezuela and did not turn their backs on our people.”
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By GlobalDataThe Venezuelan administration emphasised its dedication to fostering partnerships with international investors in the oil and gas sectors.
Earlier actions by the US, following President Nicolas Maduro’s capture in January 2026, included relaxing sanctions on Venezuela’s energy industry. This move permitted global energy companies to undertake oil and gas projects within the nation, which is a member of the Organization of the Petroleum Exporting Countries.
Renowned for its substantial oil reserves, Venezuela is struggling with deteriorating energy infrastructure despite its status as a major player in the global markets for natural gas and other related products.
Repsol’s presence in Venezuela dates back to 1993, focusing on upstream business development across various national projects.
Over the years, Repsol has managed various crude and gas assets within development and production phases, accruing substantial expertise in light and medium crude as well as different forms of gas.
A report by GlobalData TS Lombard, written by Elizabeth Johnson, suggests that a long-term increase in Venezuela’s oil production could pose challenges for Petrobras and Brazil’s oil goals. Brazil has been aiming to become the world’s fifth-largest crude producer by 2030.
If Venezuelan output rises, it could exert downward pressure on the global oil market, which is already experiencing weak prices and demand.
Venezuela’s peak output in the late 1990s was 3.5 million barrels per day (mbbl/d), significantly higher than its current production of less than 1mbbl/d.
This situation may affect investment in Brazil’s oil sector, particularly as the country advances with the Equatorial Margin development off its northern coast. However, lower global oil prices could benefit Brazil’s economy by reducing inflation.
