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Venezuela has signed an agreement with European energy giants Eni and Repsol that allows for the export of natural gas liquids -or condensates- to other markets, according to Pedro Tellechea, the country’s oil minister and Petroleos de Venezuela head.
The deal comes after years of discussions with Italy’s Eni and Spain’s Repsol for an exporting permit on condensates, a by-product of the natural gas production operation in Cardon IV, a venture they jointly run. The Cardon IV project has increased to 500 million cubic feet of natural gas per day in 2023, up 31% from 2019, according to data seen by Bloomberg. Average production of condensates were at 16,000 barrels a day in May.
The deal comes amid negotiations between the Nicolas Maduro government and the companies to have more operational control at oil ventures jointly held with state energy company PDVSA.
PDVSA, Eni and Repsol did not immediately reply to a request for comment.
The offshore natural gas Cardon IV venture, run jointly by Repsol and Eni, produces condensates that are sent to feed PDVSA refineries, according to contracts. The deal now allows a condensate recovery plant owned by Eni and Repsol to export the product to Europe. It’s not clear how much will be exported.
The deal is a “necessary previous step” before Eni and Repsol engage in larger exporting gas projects to Colombia, Trinidad or Aruba, according to Antero Alvarado, Venezuela managing partner for consultancy Gas Energy Latin America. “It’s an interesting sign that companies and PDVSA are working together to financially clarify revenues proceedings.”
