Eni, Repsol Ready Venezuela Oil Shipments to Europe Thanks to US

U.S. easing up on sanctions against Venezuela is part of broader plans by Washington to help European countries reduce their reliance on Russian energy, an analyst told Hart Energy.

Pietro Donatello Pitts, Hart Energy
Eni, Repsol Ready Venezuela Oil Shipments to Europe Thanks to US

Despite U.S. gestures toward Eni and Repsol, U.S. producer Chevron Corp. continues in Venezuela but with limited abilities and restrictions on its operations. (Source: Hart Energy, Shutterstock.com)

Italy’s Eni SpA and Spain’s Repsol SA have been given the go ahead by Washington to ship their share of Venezuelan oil production to Europe as part of broader U.S. plans to help European countries reduce their reliance on Russian energy.

The two European oil and gas producers will be allowed to use the Venezuelan oil shipments, expected to start as early as July, to satisfy unpaid debts or dividends, Reuters reported on June 5, citing sources familiar with the matter.

“I think this is a small step in helping Europe replace Russian supplies,” Lipow Oil Associates President Andrew Lipow told Hart Energy. “It may also be the first step in ultimately easing sanctions on Venezuela that could lead to a material increase in production.”

The deal doesn’t appear to include provisions to allow the companies to engage in oil-for-diesel swaps with Venezuela, which were halted under the Donald Trump administration.

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