KEY POINTS
- Eni and Repsol are owed about $6 billion by Venezuela.
- U.S. sanctions have restricted repayment mechanisms.
- Oil swap arrangements have become harder to use.
European energy companies Eni and Repsol are struggling to recover roughly $6 billion in unpaid gas-related receivables from Venezuela, according to a report by the Financial Times, underscoring the growing financial strain faced by foreign firms still operating in the sanctioned country.
The report said the companies have encountered limited engagement from U.S. officials as they seek pathways to settle the outstanding debt. Neither Eni nor Repsol, nor the U.S. Treasury, immediately responded to requests for comment. The claims could not be independently verified.
Italy’s Eni and Spain’s Repsol are partners in Venezuela’s Perla offshore gas field, a 50-50 joint venture operated locally by Cardón IV. The field is one of the country’s largest gas projects and has played a central role in supplying fuel to Venezuela’s energy system.
Sanctions complicate gas repayments
According to Reuters, the two companies have supplied Venezuela with significant volumes of gas and naphtha. The naphtha is used to dilute the country’s heavy crude, allowing it to be transported and exported more easily. Payments for those supplies have accumulated over time, leaving billions of dollars outstanding.
People familiar with the matter told the newspaper that efforts to resolve the debt have stalled amid what they described as a lack of urgency from Washington. One source cited the Trump administration’s “America First” policy stance as having reduced willingness to prioritise European companies’ payment concerns.
In March last year, Eni disclosed that U.S. authorities had informed the company it could no longer receive repayment for Venezuelan gas through oil supplied by state-owned producer Petróleos de Venezuela SA. The warning followed broader signals from Washington about cancelling authorisations that had allowed PDVSA’s foreign partners to export Venezuelan crude.
Oil swaps lose effectiveness
Since the United States imposed oil sanctions on Venezuela in 2019, oil swaps have been one of the few mechanisms available for companies to recover joint-venture debts. Under those arrangements, firms received crude or refined products instead of cash, allowing PDVSA to meet domestic fuel needs while settling obligations.
The tightening of enforcement around those swaps has reduced their effectiveness, leaving companies with fewer options to clear outstanding balances. For Eni and Repsol, the impasse highlights the growing risks of maintaining operations in Venezuela as sanctions policy evolves and diplomatic priorities shift.
The dispute adds to broader uncertainty for international energy companies operating under complex sanctions regimes, where commercial exposure increasingly depends on political decisions beyond their control.
