
Italian energy company Eni said it had been notified by US authorities that it can no longer be repaid for gas that it produces in Venezuela through oil supplies from state-owned PDVSA, as Washington exercises its international sanctions on the South American country.
“Eni continues its transparent engagement with US authorities on the matter to identify options for ensuring that non-sanctioned gas supplies, essential to the population, can be remunerated by PdVSA,” the company said in an emailed statement. “Eni always operates in full compliance with the international sanctions framework.”
Foreign oil companies such as Eni and Spain’s Repsol that do a lot of business with the US are trying to not fall out of compliance with US and other international sanctions on Venezuela. The first administration of US President Donald Trump essentially banned US imports of oil from the country in 2019.
In recent years, the US Treasury Department had issued different permits to international oil and gas companies, including licenses, waivers or letters of comfort, to allow them to conduct various operations in Venezuela, such as exporting PDVSA’s oil, despite sanctions. Eni and Repsol had accepted oil cargoes from PDVSA to recoup debt the state-owned oil company owed them from investment in an off-shore gas joint venture Cardon IV and from natural gas sales. Cardon IV supplies around 30 percent of the country’s natural gas demand for both household and industrial needs.
Now, Trump is squeezing Venezuela on two fronts as a way to pressure Venezuelan President Nicolas Maduro’s regime to accept the return of more migrants who fled to the US: He’s promising 25 percent tariffs on US imports of all goods from countries that buy Venezuelan oil, and he has also pulled Chevron Corp.’s license to drill and sell the nation’s crude.
Other companies are impacted, including Global Oil Terminals and France’s Maurel et Prom, which must wind down operations in the country by May 27.
Venezuelan officials did not immediately respond to a request for comment outside normal business hours.
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