Eni and Repsol struggle to recover $6 billion from Venezuela, FT reports

The Financial Times reports Eni and Repsol are having difficulty reclaiming about $6 billion in gas payments from Venezuela, and says U.S. officials have shown limited interest; Reuters could not immediately verify the report.

European energy companies Eni and Repsol are reported to be struggling to recover roughly $6 billion in outstanding gas payments from Venezuela, according to the Financial Times. Reuters noted it could not immediately verify the FT report and said Eni, Repsol and the U.S. Treasury did not immediately respond to requests for comment. The firms have supplied gas and naphtha that are used to dilute Venezuela’s heavy oil, and Eni produces gas from the Perla offshore field in a 50-50 joint venture with Repsol, operated by Cardón IV. The situation is linked to U.S. sanctions policy and past oil-swap arrangements that had been used to settle joint-venture debts. Key facts: - The Financial Times reported that Eni and Repsol are struggling to recover about $6 billion in gas payments from Venezuela. - The FT said U.S. officials have shown little urgency on the matter, and Eni previously said it was told by U.S. authorities it could not be repaid through oil supplied by state firm PDVSA after warnings about export authorizations. - Eni and Repsol have supplied gas and naphtha used to dilute Venezuela’s heavy oil, and Eni operates the Perla offshore gas field in a 50-50 joint venture with Repsol, run locally by Cardón IV. Summary: Companies’ efforts to reclaim the reported $6 billion remain unresolved and involve questions tied to U.S. policy and past oil-swap payment mechanisms. Undetermined at this time.