Eni Resumes Venezuela Oil Lifting in April as In-Kind Gas Payment

• Eni was owed around $2 billion by PDVSA at end of 2023, including roughly $1 billion in accrued interest, with a recoverable value of 880 million euros reported on its balance sheet
• The payment arrangement stems from a March agreement between PDVSA and Cardón IV, a joint venture equally owned by Eni and Repsol that produces gas from Venezuela's Perla field
• U.S. Treasury's OFAC has gradually eased Venezuela sanctions since January through general licenses, enabling Eni to continue operations and potentially strengthen activities in the country

ENI RESUMES VENEZUELA OIL LIFTING AS IN-KIND GAS PAYMENT

Italian energy company Eni resumed lifting Venezuelan crude oil in April 2026 as payment-in-kind for gas production, enabling recovery of substantial outstanding receivables from Venezuela's state oil company PDVSA.

Key Details:

The arrangement stems from a March agreement between PDVSA and Cardón IV, a 50-50 joint venture between Eni and Spain's Repsol that operates the Perla gas field in Venezuela. Under the deal, gas sales payments are made through crude oil shipments rather than cash, with the first cargo lifted in April.

Financial Exposure:

Eni was owed approximately $1.9 billion by PDVSA at end-2025, including roughly $1 billion in accrued interest. The company's balance sheet shows a recoverable value of €880 million for Venezuelan receivables as of end-2025.

Regulatory Context:

The oil lifting resumption follows gradual easing of U.S. sanctions on Venezuela since January through general licenses issued by the Treasury's Office of Foreign Assets Control (OFAC). This changed regulatory environment allows Eni to continue Venezuelan operations and potentially strengthen activities over the medium term.

Market Implications:

The arrangement provides Eni a mechanism to monetize long-standing debts while maintaining energy operations in Venezuela. The payment-in-kind structure circumvents cash flow challenges facing PDVSA while allowing European energy companies to recover receivables under relaxed sanctions. This could signal broader re-engagement with Venezuelan energy assets by international firms if sanctions continue easing, potentially increasing Venezuelan crude supply to global markets.