(Oil Price) – Thanks to a U.S. license for Spanish energy major Repsol to import Venezuelan crude, Spain’s crude oil imports from the South American country have hit this year the highest level since 2006, according to Spanish government data.
So far this year, Spain has imported about 2.6 million metric tons of crude oil from Venezuela, per data from Spanish government agency Cores cited by Reuters. Back in 2006, Spain’s crude imports from Venezuela at this time of the year were roughly 2.7 million tons.
Venezuela has boosted its crude oil exports to Western countries this year, thanks to eased U.S. sanctions and specific licenses granted to European companies including Repsol and Italy’s Eni.
Repsol has a special U.S. license to import crude from Venezuela’s state oil firm PDVSA as a repayment of debts.
Even after the six-month temporary U.S. sanctions relief ended in April 2024, the United States issued several licenses authorizing international majors to continue dealing, in part, with Venezuela and Venezuela’s crude.
One of these specific licenses has been granted to Repsol, which has existing oil production in Venezuela, alongside U.S. Chevron, Italy’s Eni, Maurel & Prom, and Shell.
Repsol, in joint ventures with PDVSA, has stakes in the offshore gas Perla Field (Cardón IV), one of Latin America’s largest offshore gas fields, a 60% stake in the onshore Quiriquire gas project, and interests in the Petrocarabobo heavy crude project and the Petroquiriquire joint venture.
As a result of the license to Repsol, Spanish crude oil imports from Venezuela have surged this year.
Between January and July 2024, Spain’s crude imports from the country holding the world’s biggest oil resources reached 1.7 million tons, exceeding the imports for the entire year 2023, which were a total of 1.4 million tons.
Repsol has also raised production at its Venezuelan joint ventures with PDVSA, the Spanish firm’s CEO Josu Jon Imaz said in July.
By Charles Kennedy for Oilprice.com
