ENI and Repsol want to boost liftings and production of Venezuelan oil but are limited by poor infrastructure and concerns of sanction re-imposition, according to Platts.

• Francesco Gattei, ENI’s CFO Eni said his company was seeking boost liftings from the Venezuela, while Repsol CEO Josu Jon Imaz said the sanction relief provides opportunities to raise Venezuela’s upstream output.
• However, due to the large investment required for its oil production infrastructure coupled with sanction uncertainty, Platts’ sees Venezuela’s crude production not exceeding 850k b/d in the next 6-12 months compared to 750k b/d currently.
• Sanctions could also return this month if President Maduro refuses to allow banned opposition members to compete at the next election.
• Potential for European coking refineries to use Venezuela’s heavy sour is also marginal as the USGC will likely absorb most of Venezuela’s volumes.
• Eni and Repsol have also been taking Venezuelan crude under oil-for-debt arrangements.

Source: S&P Global Commodity Insights