LatAmOil: US says Eni, Repsol can make oil-for-debt deals with PdVSA

Two leading European oil companies, Italy’s Eni and Spain’s Repsol, have unveiled ambitious plans to broaden an oil-for-debt arrangement with Venezuela, in a move that appears to have secured the blessings of US authorities, Reuters reported on August 29.

Under such contracts, the companies would be able to supply refined petroleum products to Venezuela’s national oil company (NOC) PdVSA while also boosting oil shipments to Europe.

According to Reuters, Eni and Repsol have secured a green light from the US State Department to procure Venezuelan crude and process it within European refineries. Washington was reportedly willing to take this step because these two companies have been significantly impacted by Western sanctions imposed last year after Russia’s invasion of Ukraine, which disrupted the flow of Russian oil to Europe.

This strategic manoeuvre will help the companies recover accumulated debts and dividends from their joint ventures with PdVSA in the cash-strapped South American country.