Two major energy companies have reached a deal with Venezuela's interim government to revive production in a large offshore field and begin exporting natural gas, according to a new report.
Bloomberg detailed that Spain's Repsol and Italy's Eni plan to start exporting the resource by the end of 2031. The deal, the outlet added, allows the companies to more than double production in the Gulf of Venezuela and export liquefied natural gas from a floating terminal.
The deal is the latest sign that Venezuela is being brought back into the global economy following the U.S.'s capture of former authoritarian President Nicolas Maduro in January.
Last week, the International Monetary Fund (IMF) and the World Bank announced they resumed engagement with the country, a development that could pave the way for the country to receive international funding the first time in several years.
CNBC noted that engagement with the country had stopped in 2019 due to issues related to the recognition of the government as lawful.
Now, the IMF could conduct its first assessment of the country's economy in about 20 years and potentially unlock billions of dollars resulting from frozen special drawing rights. JPMorgan estimated the figure at about $5 billion.
IMF Managing Director Kristalina Georgieva said in a statement that the organization is now dealing with interim President Delcy Rodriguez.
Also last week, the U.S. eased sanctions on the country's state-run financial system, allowing key institutions to resume using U.S. currency and access global markets.
The decision, announced by the U.S. Treasury, enables Venezuela's government-run banks to directly receive billions of dollars in oil revenue and reenter the U.S.-controlled financial system, a move aimed at easing pressure on the country's struggling economy.
The step is also expected to support the administration of Rodríguez, which has faced growing unrest in recent weeks. Public-sector workers have taken to the streets in Caracas demanding higher wages, with many earning about $160 a month, well below private-sector pay levels, according to Associated Press.
Rodríguez last month said wages would increase from May 1 and on Monday urged Venezuelans to push for sanctions relief. The latest Treasury action appears to address some of those constraints without fully lifting restrictions.
Washington has also helped the Venezuelan administration by expanding authorizations for American companies to engage with the country's energy sector. Oil major Chevron last week reached an agreement to increase production in the country, according to an Axios report.
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