Venezuela's state oil company PDVSA and Spanish energy group Repsol REP.MC have signed a crude and gas agreement to boost output in northwestern Venezuela, officials from the two companies said on Tuesday.
PDVSA President Hector Obregon said at an event at the government palace the deal offers "exploration opportunities" on the eastern shore of Lake Maracaibo, where the two firms already operate the Petroquiriquire joint venture, which could add about 20,000 barrels per day of light crude to current average output of around 40,000 bpd.
The additional crude would supply the Paraguana Refining Center in Falcon state, helping fuel economic growth, he added, in comments broadcast on state television.
Repsol said in April it had reached an agreement with the Venezuelan government and PDVSA to regain operational control of its oil assets in the South American country.
The agreement includes plans to triple output from Venezuelan oil operations within three years and ensure payment mechanisms.
After the U.S. capture of President Nicolas Maduro in January, Washington eased sanctions on Venezuela's energy sector, issuing general licenses that allow international energy companies to operate oil and gas projects.
(Reuters - Reporting by Reuters; Writing by Fabiola Arámburo; Editing by Daina Beth Solomon and Sanjeev Miglani)