Banco Sabadell | According to press reports, Repsol is in intense negotiations with the US government to unblock its energy assets in Venezuela, valued at €330 million (2% capitalisation). Since the trade blockade imposed by Donald Trump in March, the company has been unable to export hydrocarbons as compensation for PDVSA’s historical debts to it.
Repsol is seeking White House authorisation for a compensatory agreement that would allow it to collect in kind — oil or naphtha — without this constituting a direct commercial transaction.
Assessment: News with little impact until it is seen whether some kind of agreement is reached. Repsol has been negotiating with the US government since permits to export crude oil and derivatives from Venezuela were cancelled last March. We note that Repsol has been reducing its exposure to Venezuela in recent years (€330 million, 2% capitalisation) as well as its debt with PDVSA (approx. €370 million, 2% capitalisation/7.8% DFN’24). Its main presence in Venezuela is currently concentrated in the Cardón IV project, where it has been reducing capex while cash generation from production there is currently very low.
