-- Eni (E) and the Spanish energy major Repsol plan to export LNG from Venezuela by 2031 after securing a deal to expand output and recover unpaid gas revenues, Bloomberg reported Monday, citing people familiar with the matter.
The deal with interim President Delcy Rodriguez allows the firms to more than double output at the Gulf of Venezuela field and export LNG via a floating terminal, sources said.
Eni and Repsol also secured assurances they will be reimbursed for billions of dollars' worth of gas previously delivered but not paid for, according to the report.
The development is seen as a breakthrough for both firms, which have maintained involvement in the project for about two decades despite political and economic instability, the report added.
The timing comes as global LNG supply tightens following disruptions linked to conflict involving Iran, while US policy has eased sanctions on Venezuela's energy sector.
The deal was signed in mid-March, with both companies expected to submit a detailed development proposal to Petroleos de Venezuela by June, according to the report.
Venezuela has historically focused on oil production, but the country also holds large offshore gas reserves that remain underdeveloped, the report noted.
The Perla field, discovered in 2009, contains about 17 trillion cubic feet of gas, making it one of the largest gas finds in Latin America, according to the report.
Current production stands near 585 million cubic feet per day, with exports permitted once domestic supply reaches about 645 million cubic feet per day, the report said.
The companies plan to add two platforms by 2028 and lift output to about 1.2 billion cubic feet daily before exports begin, with the project's operating term extended from 2036 to 2051, according to the sources.
Eni reportedly told Bloomberg that it had finalized an agreement with Venezuela to boost gas output and initiate exports.
has reached out to Repsol for any comments.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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