Spanish energy company Repsol plans to sharply expand its oil production in Venezuela after receiving authorization from the U.S. Treasury to operate in the country.

Chief executive Josu Jon Imaz told investors that the company expects gross oil production in Venezuela to rise by more than 50% over the next 12 months, with ambitions to triple output within three years. Repsol produced 71,300 barrels of oil equivalent per day in Venezuela last year, up from 67,000 barrels the previous year.

The permit from the U.S. Treasury’s Office of Foreign Assets Control allows Repsol to resume direct participation in Venezuela’s oil sector, alongside companies including BP, Chevron, Eni, and Shell. Imaz said the company is preparing to restart operations and is open to exploring additional oil and gas opportunities in the country.

The move follows significant political changes in Venezuela and renewed U.S. efforts to encourage foreign investment in the nation’s vast energy reserves. Venezuela holds the world’s largest proven oil reserves, and U.S. officials have indicated that production could rise substantially this year under new investment flows.

Repsol also plans to increase its Venezuelan natural gas production by about 10% this year. Previously, the company had received crude oil as payment for supplying gas used in power generation. U.S. sanctions pressure had disrupted those arrangements, contributing to outstanding payments. Venezuela currently owes Repsol approximately €4.55 billion, and the renewed authorization is expected to facilitate repayment.

Despite reporting a 15% drop in adjusted net income to €2.6 billion for 2025, Repsol said it plans to return €1.9 billion to shareholders in 2026, slightly higher than last year. Shares in the company rose 2.7% in early trading following the announcement.

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