Alphavalue/Divacons | The new general licence issued by the US Treasury authorises ENI (Reduce, Target Price €18.4/share) and Repsol to collect PDVSA’s accumulated debt, estimated at around $6 billion, through the exchange of Venezuelan heavy crude oil for fuels.
After producing gas without receiving direct payments, this measure re-establishes a crucial channel for value recovery, albeit under a stricter US regulatory framework that prohibits the use of Chinese-controlled infrastructure.
Given that the Chinese market is no longer an option for monetising these barrels, it is expected that the flow of crude oil will be redirected mainly to refineries in the United States, which is a positive step forward for both European companies in stabilising their assets in the region.
Repsol: Reduce, Target Price €18.1share.
