Venezuela’s acting President Delcy Rodríguez signed agreements with Spanish energy firm Repsol and Italian company Eni on Thursday, March 12, to bolster gas production at the Cardón IV consortium, a project the companies have been involved in since 2009.
The agreements reach as part of a broader restructuring of Venezuela’s hydrocarbon sector under a modern law adopted in January, following a period of increased European engagement with Caracas. The new law aims to open the sector to private investment and reduce state control, according to reports.
“This agreement not only guarantees the supply of gas to our country for national development and domestic consumption, but will also allow for expansion towards exports,” Rodríguez stated during a televised ceremony. She added that the deal would position Venezuela to become a gas-exporting nation.
Rodríguez expressed gratitude to Repsol and Eni for maintaining a presence in Venezuela “during the toughest moments,” and congratulated the boards of PDVSA and PDVSA Gas for increasing production. The Cardón IV field, also known as Perla, is considered one of Repsol’s significant discoveries and one of the largest offshore gas deposits in Latin America, currently producing 580 million cubic feet (16.4 million cubic meters) of gas per day, according to Repsol.
The signing follows a similar agreement last week between Caracas and British energy company Shell. Venezuela, possessing the world’s largest proven oil reserves, is seeking to expand its gas production. The country has been subject to a U.S. Oil and gas embargo since 2019, but the U.S. Treasury has recently issued licenses to Shell, Maurel & Prom (France), Repsol, Eni, BP (United Kingdom), and Chevron (USA) to operate within Venezuela.
Alongside the energy deals, U.S. Interior Secretary Doug Burgum and Energy Secretary Chris Wright visited Venezuela to promote the country’s energy sector reopening. The Rodríguez administration recently reformed Venezuela’s Hydrocarbon Law, granting corporations increased control over crude extraction and exports, while allowing the Venezuelan government to reduce taxes and royalties and lease out oil projects in exchange for a share of production.
The reforms represent a shift from the policies of former President Hugo Chávez, who in 2001 overhauled oil legislation to reassert state control over the sector, including mandatory majority stakes in joint ventures and increased fiscal contributions. These earlier policies financed social programs that reduced poverty and expanded access to healthcare, housing, and education.
Venezuela is also expected to adopt a reform of its mining code in the coming days, mirroring the changes made to the hydrocarbon law, under pressure from the United States.
