Venezuela ramps up oil output and lands direct crude contracts as US sanctions ease

Spain’s Repsol reiterated its commitment to raise oil production in Venezuela, saying debt talks are off the table and prioritising new output. The Venezuelan government, under interim president Delcy Rodríguez, announced 30 investment agreements covering hydrocarbons, electricity, mining and tourism, aiming to attract fresh capital.

U.S. authorities have generated over $13 billion from Venezuelan oil sales since the January takeover, but the destination of those funds remains opaque, prompting calls for transparency in Congress. Meanwhile, U.S. sanctions have been softened, allowing a General License 50A that lets French explorer Maurel & Prom ship Venezuelan crude, and has opened the market for direct contracts.

Refiners and producers such as Phillips 66, Reliance Industries, Valero and others are now signing supply deals directly with state‑run PDVSA, reducing the share of traditional traders Vitol and Trafigura. Venezuelan exports to the United States have risen to a nine‑year high of about 614,000 barrels per day, with total shipments in 2026 projected near 1.2 million bpd. These developments signal a shift toward higher realized prices for Venezuela and a restructuring of global crude‑trading flows.