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.
RELATED
Renewed US Sanctions to Complicate Venezuelan Oil Sales, Not Stop Them
“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.
Recommended Reading
For Sale, Again: Oily Northern Midland’s HighPeak Energy
2024-03-08 - The E&P is looking to hitch a ride on heated, renewed Permian Basin M&A.
E&P Highlights: Feb. 26, 2024
2024-02-26 - Here’s a roundup of the latest E&P headlines, including interest in some projects changing hands and new contract awards.
TotalEnergies Acquires Eagle Ford Interest, Ups Texas NatGas Production
2024-04-08 - TotalEnergies’ 20% interest in the Eagle Ford’s Dorado Field will increase its natural gas production in Texas by 50 MMcf/d in 2024.
CEO: Continental Adds Midland Basin Acreage, Explores Woodford, Barnett
2024-04-11 - Continental Resources is adding leases in Midland and Ector counties, Texas, as the private E&P hunts for drilling locations to explore. Continental is also testing deeper Barnett and Woodford intervals across its Permian footprint, CEO Doug Lawler said in an exclusive interview.
Halliburton’s Low-key M&A Strategy Remains Unchanged
2024-04-23 - Halliburton CEO Jeff Miller says expected organic growth generates more shareholder value than following consolidation trends, such as chief rival SLB’s plans to buy ChampionX.