Repsol has inked an agreement that will allow it to incorporate two new fields in Venezuela and effectively double its production at its Petroquiriquire joint venture (JV), CEO Josu Jon Imaz said during the Spanish company’s quarterly webcast.

The two fields, Tomo Polo and La Seba, currently produce an average 20,000 gross bbl/d. Petroquiriquire is currently producing around 20,000 gross bbl/d with contributions mainly from the Barúa Motatán and Mene Grande fields, Imaz said during Repsol’s first-quarter 2024 webcast with analysts.

“So that means that we are – thanks to this agreement, doubling the current production of Petroquiriquire,” Imaz said.

Repsol holds a 40% interest in Petroquiriquire. The Venezuela Petroleum Corp., a subsidiary of state-owned Petróleos de Venezuela (PDVSA), holds a majority 60% interest.

Imaz said the agreement would positively impact the JV and allow for potential synergies, improved recovery factors and increased cash flow. Imaz said the JV will help PDVSA to repay its financial debt to Repsol.

Cardón IV gas project update

Imaz said work at the Perla gas field, or Cardón IV project, offshore Venezuela with Italy’s Eni SpA continues despite the recently re-imposed sanctions by the U.S. Office of Foreign Assets Control (OFAC).

“The comfort letter that was issued by the American Department of State … gives us some kind of comfortability about the operations we have in Venezuela,” Imaz said.

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“We lift cargoes and we swap shipping some diluents to Venezuela in the framework of this operation,” Imaz said, referring to the swap deals that OFAC allows Repsol and Eni to conduct in Venezuela.

“And we see today reasonable conditions to improve our position in Venezuela without further financial exposure, and contributing to increased production either in Cardón gas production or in Petroquiriquire oil production,” Imaz said.