Washington's decision includes the Spanish oil company Repsol. The companies must cease operations in the South American country by May 27.
The Trump administration has notified foreign partners of Venezuelan state oil company PDVSA of the imminent cancellation of their licenses to export oil and derivatives from the South American country, sources familiar with the matter said Saturday.
Former President Joe Biden's administration in recent years granted authorizations to secure the supply of Venezuelan oil to refineries from Spain to India, as exceptions to the U.S. sanctions regime against the South American nation.
Among the companies that received licenses and letters of support from Washington are Repsol of Spain, Eni of Italy, Maurel & Prom of France, Reliance Industries of India, and Global Oil Terminals of the United States. Most of the companies had already suspended imports of Venezuelan oil following Trump's imposition of secondary tariffs on buyers of Venezuelan oil and gas earlier this week, according to sources and vessel-tracking data.
Last month, Trump announced the cancellation of a key license granted to the U.S. oil producer Chevron to operate in Venezuela and export crude oil to the United States.
Days later, the U.S. Treasury Department ordered the company to scale back operations and last week extended the deadline to complete the shutdown to May 27.
The revocation of the most important U.S. license for the Venezuelan energy industry signaled a shift in Washington's policy toward Venezuela as the Trump administration cracks down on migration, with a particular focus on Venezuelans in the United States illegally.
The government of President Nicolás Maduro, whose 2024 reelection was not recognized by the United States, has criticized the sanctions, claiming they constitute an "economic war."
REPSOL CONFIRMS NOTIFICATION OF REVOCATION
Repsol sources consulted by Europa Press have confirmed that they have received a letter from the US government announcing the revocation of the permit for the export of Venezuelan oil.
Repsol, which has been operating in Venezuela since 1993, maintains a contractual relationship with PDVSA through the joint venture Petroquiriquire, of which it holds a 40% stake. This collaboration is focused on 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 its oil shipments to Spain, reaching a two-decade high. This crude is processed by Repsol in Spanish refineries as part of the payment of outstanding debts, something that had previously been authorized by US authorities under various licenses.
In 2023, the United States relaxed some restrictions imposed on companies operating in Venezuela, allowing for the reactivation of joint activities. However, with Donald Trump's arrival in the White House after the 2024 elections, uncertainty arose as to whether the permits would be maintained, and the letter sent to Repsol confirmed the US administration's change of heart on this matter.
Repsol acknowledges geopolitical risks associated with its equity exposure in Venezuela, which amounts to €467 million, including investments in projects such as Cardón IV and accounts receivable from PDVSA.
Venezuela's debt with Repsol is primarily linked to PDVSA and has been managed through in-kind payment agreements, primarily with crude oil. At the end of 2024, the outstanding debt stood at $634 million.
In 2016, Repsol and PDVSA agreed to a credit line of up to $1.2 billion to finance joint ventures. Of this line, the outstanding balance (interest-free) amounted to $634 million. In 2024, Repsol recovered $166 million as part of the repayment of this debt, although a significant balance remains outstanding.
Due to geopolitical risk and uncertainty in Venezuela, Repsol has increased its provisions for default risk, reaching €601 million in 2024.
Repsol does not receive cash payments for this debt; instead, it receives Venezuelan oil as compensation. This scheme has been authorized by the United States Office of Foreign Assets Control (OFAC), allowing Repsol to repay the debt through crude oil deliveries.
Therefore, experts believe that the Trump administration's revocation of Venezuelan crude oil export licenses threatens Repsol's ability to recover this debt, and estimate that if these restrictions remain in place, operations and the payment mechanism could be seriously affected.
