invest a million in an infrastructure that has been ruined for decades
The capture of Nicolás Maduro by US forces has left to Donald Trump’s administration as de facto “guardian” of the richest oil sector —and at the same time more punished. In this new geopolitical board, Repsol CEO Josu Jon Imaz was selected to participate in a key meeting in the East Room of the White House along with other oil giants. According to BloombergRepsol is now seeking urgent licenses to resume the export of crude oil, an activity that was frozen after the trade embargo of March 2025. The slogan so that Repsol can fulfill its strategic plan and take its business to the stock market upstream (exploration and production) on Wall Street, needs its Venezuelan assets to stop being a risk accounting entry and become real barrels. Resuscitate a “broken” industry. During the meeting, Trump has asked the oil companies a joint investment of 100 billion dollars to revive an obsolete industry. But the infrastructure it’s so deteriorated that the state-owned PDVSA has gone so far as to dismantle oil pipelines to sell the metal as scrap. Even so, as RTVE has explainedRepsol has promised to triple its production, going from 45,000 to 135,000 barrels per day within three years. titanic challenge. Venezuelan crude oil is “extra heavy”, thick as tarand arrives at the refineries “dirty”, loaded with salt and metals. Only companies with historical roots such as Repsol (present in the country since 1993) have the know-how to process this “heavy food.” But the problem is not just oil. 90% of what Repsol produces in the La Perla field It’s natural gasa resource that powers 33% of Venezuela’s electricity supply. Without Repsol gas, the country goes out; But for this gas to be profitable and exportable, the company needs to build liquefaction plants that simply do not exist today. “Pragmatism in the face of the Trump environment”. To facilitate the disembarkation, Washington has declared a “national emergency” that allows the US Treasury to shield Venezuelan oil revenues in US accounts. This measure, qualified by Expansion like an unprecedented movementseeks to prevent funds from being confiscated by the thousands of creditors waiting at the door, offering the “total security” that Trump promised executives. While Repsol declares itself “ready to invest strongly,” ExxonMobil CEO Darren Woods threw a cold bucket of water on the White House itself. According to the Financial TimesWoods affirmed that Venezuela remains “uninvestable” without drastic changes in the legal framework and recalled that its assets were confiscated twice in the past. On the horizon. Repsol walks through a financial minefield. Still carries a property debt of 330 million euros from PDVSA. Furthermore, Financial Times warns that competitors like Chevron have an advantage due to their close personal relationship with Trump and for having maintained constant operations under special licenses during the years of the embargo. Added to this is the warning from analyst Ron Bousso in Reuters: Trump has suggested that companies should “forget” past debts to start on a “level playing field.” For Repsol, this could mean definitively giving up collecting what was lost under Chavismo in exchange for maintaining its future exploitation rights. A final bet. The company must decide whether to bury billions in rebuilding fossil infrastructure in a world clamoring for the energy transition. The “hole” of 1,160 million euros in Spain’s trade deficit with Venezuela It is just the symptom of a dangerous dependency. Venezuela is still the largest gas station in the world, but today it is a facility in ruins. Repsol’s success will no longer depend only on its technical expertise in the Quiriquire or La Perla fields, but on its ability to dance to the rhythm set by Washington in a reconstruction that, according to expertscould take decades to complete. Image | Repsol Xataka | Getting hold of Venezuela’s immense oil reserves seems like a “bargain.” It’s actually an engineering nightmare.
