The Venezuelan government has reached an agreement with Italian oil company ENI and Spain’s Repsol to export natural gas liquids (NGL), also known as condensates, to other markets. Rafael Tellechea, People’s Power Minister for Petroleum, confirmed on his social networks that the representatives of the Cardón IV gas plant, run by both companies, already have the necessary authorization for the agreement.
This agreement is a necessary step before ENI and Repsol can participate in gas export projects to Colombia, Trinidad and Tobago, or Aruba, according to Antero Alvarado, managing partner of Venezuela for the consulting firm Gas Energy Latin America. The interest of European companies in condensates is due to the fact that this by-product is part of the natural gas production in Cardón IV, which has increased its production to 500 million cubic feet of natural gas per day in 2023, 31% more than in 2019, according to Bloomberg.
Average condensate production in May was 16,000 barrels per day. The agreement comes amid negotiations between the Venezuelan government and European companies to gain greater operational control over the oil companies they jointly own with state oil company Petróleos de Venezuela (PDVSA). This agreement has taken years to materialize and is an interesting sign that the companies and PDVSA are working together to financially clarify revenue procedures, according to Alvarado.