The Venezuelan State owes the energy group Repsol 4.55 billion euros (US$5.37 billion)as revealed by the Spanish company in its annual financial report published on Thursday, in which the figure is disclosed for the first time.
Repsol has been operating in Venezuela for more than three decades, has personnel on the ground and is an important partner of the state energy company PDVSA. It is one of the companies authorized to carry out oil and gas operations in Venezuela under a general license recently issued by the Office of Foreign Assets Control of the United States Department of the Treasury.
Until March of last year, Repsol had a permit from the US authorities to receive oil from the state oil company. Pdvsa as payment of the debt. That permit was revoked in March.
Although recovery of outstanding debt has long been an important issue, CEO Josu Jon Imaz said that It was not Repsol’s main priority at that time.
“I think now is the time to recover a normal commercial operation, which means that we are paid for the production that we have,” Imaz told analysts at the company’s annual earnings call, pointing to investment to increase oil and gas production in the South American country.
INCREASE IN PRODUCTION
Repsol has stakes in oil and gas fields in Venezuela. It is working to increase the daily amount of gas it produces and supplies there by 10%, reaching around 18 million cubic meters. Imaz said, without giving a specific deadline.
Regarding oil, Repsol can increase production by 50% in 12 months and triple it in three years, said. Last year’s average production was 71,300 barrels of oil equivalent per day.
“If Venezuela recovers normal production levels, if the country’s economic development evolves in the appropriate way, I am sure that we will find frameworks and solutions to talk about the past,” he said, referring to the debt.
The 4,550 million euros (US$5,370 million), a significant figure for a company with a market capitalization of less than 20,000 million euros (US$23,531 million) They include commercial debt linked to the supply of oil and gas plus accrued interest, and 947 million euros (US$1,114 million) in financing for its Petroquiriquire joint venture with PDVSA, according to the report.
Repsol has reserved provisions worth around 3,590 million euros (US$4,223 million) in relation to the debt. Its total exposure in Venezuela was 276 million euros ($324 million) at the end of last year, according to the report.
