Italian energy giant Eni continues producing natural gas in Venezuela despite U.S. sanctions disrupting its payment structure. Since 2022, Eni has supplied gas to Venezuela’s domestic market, receiving compensation in the form of Venezuelan crude oil, which it exports.
However, recent U.S. policy changes now prohibit such transactions, complicating Eni’s operations. The Trump administration recently revoked Eni’s ability to accept oil as payment, aiming to tighten sanctions on Venezuela’s government.
This decision creates significant challenges for Eni, which produces approximately 60,000 barrels of oil equivalent per day of gas in Venezuela. The company plays a crucial role in meeting the country’s energy needs, making its operations vital for avoiding a domestic energy crisis.
Eni CEO Claudio Descalzi stated the company remains committed to sustaining gas production to prevent social instability in Venezuela. He emphasized that halting operations would severely impact households and industries reliant on natural gas.
Descalzi also confirmed that Eni is actively engaging with U.S. authorities to seek a waiver or alternative solutions for continuing its work while complying with international regulations.
Venezuela’s economic struggles and reliance on barter arrangements like this highlight the broader impact of sanctions on its energy sector. Foreign companies like Eni face mounting pressure to balance compliance with sanctions while addressing local needs and maintaining their investments.
Eni’s negotiations with Washington will determine its ability to sustain operations and secure fair compensation. This situation underscores the challenges of navigating geopolitical tensions while ensuring humanitarian needs are met in a sanctioned country. The outcome could influence future international engagement with Venezuela’s energy sector.