USA revokes permits to several oil companies, including Repsol, to export oil from Venezuela

The administration of the US president, Donald Trump, has revoked the permits and exemptions granted to several oil companies, including the Spanish Repsol, to export crude from Venezuela, according to sources cited by the newspaper ‘The Wall Street Journal’ and the Bloomberg news agency.

Repsol sources consulted by Europa Press have confirmed that they have received the letter from the US administration in which it communicates the revocation of the permission for the export of Venezuelan oil.

Washington’s decision includes the American oil company Global Oil Terminals, owned by the millionaire and donor of the Harry Sargeant III Republican Party, the French Maurel ET Prom and the aforementioned Repsol, according to three connoisseur people of the matter cited by Bloomberg. These companies must end their operations in Venezuela before May 27, the sources explain.

Washington’s decision also affects licenses issued to Venezuelan gas companies that have a commercial relationship with the Venezuelan state oil company, PDVSA.

These permits were issued by the US Department of the Treasury under the format of licenses, exemptions or compliance letters to allow them to operate in Venezuela and export PDVSA oil without affecting the sanctions imposed by Washington.

With regard to the American Global Oil Terminals, it must also end all transactions with PDVSA before April 2, paying any pending amount for the purchase of oil for asphalting.

Also the Economic newspaper ‘The Wall Street Journal’ on Friday reported that Sargeant’s oil company had received a order to leave Venezuela and quotes as a source a letter sent by the Treasury Department to the company.

Global Oil Terminals received a two -year exemption in May to buy and transport asphalt to the United States and Caribbean countries.

Previously, Trump has given the Chevron oil company until May 27 to end its relations with Venezuela to a extent that it seeks to press the Venezuelan government of President Nicolás Maduro.

Repsol presence in Venezuela

Repsol, which has been operating in Venezuela since 1993, maintains a contractual relationship with PDVSA in Venezuela through the Mixed Company Petroquirifise, of which it has 40%. This collaboration is aimed at the exploitation of oil fields such as Mene Grande, Barúa Motatán and Quiriquire, and seeks to increase the country’s oil and gas production.

In 2024, Venezuela doubled the sending of oil to Spain, reaching maximum of two decades. This crude is processed by Repsol in Spanish refineries as part of the payment of pending debts, something that US authorities had authorized until now by virtue of different licenses.

In 2023, the United States relaxed some restrictions imposed on companies that operate in Venezuela, which allowed to reactivate joint activities. However, with the arrival of Donald Trump to the White House after the 2024 elections, uncertainty was generated on whether the permits would be maintained, and the letter sent to Repsol has confirmed the change of sign of the US administration on this particular.

Repsol recognizes geopolitical risks associated with its heritage exposure in Venezuela, which amounts to 467 million euros, which includes investments in projects such as Cardón IV and accounts receivable to PDVSA.

The debt that Venezuela maintains with Repsol is fundamentally linked to PDVSA and has been managed through payment agreements in kind, mainly with raw. At the end of 2024, the balance of historical debt amounted to 634 million dollars.

In 2016, Repsol and PDVSA agreed a credit line for up to 1.2 billion dollars to finance joint operations. Of this line, the living balance arranged (without interest) amounted to 634 million dollars. In 2024, Repsol recovered 166 million dollars as part of the payment of this debt, although there is still a significant pending balance.

Due to the geopolitical risk and uncertainty in Venezuela, Repsol has increased its provisions for the risk of default, reaching 601 million euros in 2024.

PAYMENT IN KIND

Repsol does not receive cash payments for this debt, instead, it obtains Venezuelan oil as compensation. This scheme has been authorized by the United States Foreign Assets Control Office, allowing Repsol to amortize debt through oil deliveries.

Therefore, experts consider that the revocation by the Donald Trump government of licenses to export Venezuelan crude threatens Repsol’s ability to recover this debt, and estimate that if these restrictions are maintained, operations and payment mechanism could be seriously affected.