US Pushes Repsol, Eni and Maurel & Prom Out of Venezuela to Increase Economic Pressure

Caracas, April 1, 2025 (venezuelanalysis.com) – The Donald Trump administration has revoked permits that allowed a number of foreign corporations to operate in Venezuela’s oil sector.

According to multiple reports, the US Treasury Department gave Repsol (Spain), Eni (Italy) and Maurel & Prom (France) a May 27 deadline to wind down their oil and gas activities in the Caribbean nation.

The three European companies presently hold minority stakes in joint projects with Venezuela’s state oil company PDVSA. Orinoco Research, citing internal PDVSA documents, reported a combined crude output of 83,000 barrels per day (bpd) from ventures involving Repsol, Eni and Maurel & Prom, making up roughly 10 percent of Venezuela’s present production.

Washington’s decision to drive the firms out of Venezuela was expected following the recent withdrawal of Chevron’s license to produce and export crude from its joint projects in the South American country. The US oil giant was first handed an April 3 deadline that was later extended to May 27.

The four Western corporations had received US Treasury licenses and “comfort letters” to restart operations in Venezuela. The exemptions were the Biden administration’s only significant departure from the “maximum pressure” sanctions policy imposed during Trump’s first term in office.

The Venezuelan oil industry remains under financial sanctions and an export embargo, with several intermediaries and shipping companies also targeted in recent years in an effort to strangle Caracas’ main source of foreign revenue.

European enterprises would not violate primary sanctions since they are not under the US Treasury Department’s jurisdiction. However, Washington has overtly threatened secondary sanctions, leading multinationals to seek approval before engaging with Venezuelan counterparts.

The ramped-up pressure on Venezuela’s most important industry follows the White House’s threat to levy “secondary tariffs” on any country that receives Venezuelan oil and gas shipments. China, the main destination for Venezuelan crude, criticized the measure and urged Washington to “cease interference in Venezuelan affairs.”

For its part, the Nicolás Maduro government stated that it maintains “fluid communications” with its foreign partners and pledged to continue fulfilling existing contracts. The communique reiterated Caracas’ call for foreign investment in its energy sector.

Venezuelan officials have blasted Washington’s latest escalation of coercive measures, vowing that the oil industry and the country’s economy would continue its recent positive trends.

European partners seek to continue natural gas operations

Repsol and Eni each own 50 percent of the shares of the Cardón IV offshore project that supplies thermoelectric plants in western Venezuela as well as the domestic cooking gas distribution network. Cardón IV had a daily output of around 600 million cubic feet of gas in 2023.

The venture is not subjected to primary sanctions since PDVSA does not hold a majority stake. However, the companies would require US Treasury authorization to receive payments for natural gas supplied to the Venezuelan state-owned firm in order to avoid secondary sanctions.

Repsol CEO Josu Jon Imaz stated that the company would seek to maintain natural gas operations, representing 85 percent of its production in Venezuela. Spanish Foreign Minister José Manuel Albares said in an interview that Madrid was analyzing the US’ decision and would defend the interests of one of the country’s largest corporations.

Eni likewise issued a statement pledging “full compliance with international sanctions” while also pledging to seek options to continue natural gas distribution in Venezuela’s domestic market. 

For its part, Maurel & Prom issued a press release acknowledging the US Treasury Department’s waiver revocation and announcing that it was “assessing the implications with its legal advisers.” The company’s shares fell by 15 percent on Monday, with Repsol and Eni experiencing slight downturns as well.

In addition to pressuring PDVSA’s European partners out of the country, the Trump administration withdrew export licenses from India’s Reliance Industries and US-based Global Oil Terminals.

Reliance had been importing around 70,000 bpd of Venezuelan crude since the second half of 2024. Global Oil Terminals, owned by magnate Harry Sargeant III, was a major buyer of Venezuelan asphalt. It received a similar May 27 cutoff for transactions with PDVSA, but with an April 2 deadline to complete any payments to Venezuelan entities.

Edited by Cira Pascual Marquina from Caracas and José Luis Granados Ceja from Mexico City, Mexico.