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Repsol, PDVSA Reportedly Sign Venezuela Oil, Gas Agreement to Expand Output

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Repsol and PDVSA signed a new agreement in Venezuela that could add about 20,000 barrels per day of crude output, according to multiple media reports on Tuesday.

The memorandum of understanding covers the Horcon area, where Repsol, the Venezuelan government and state-owned PDVSA will assess opportunities to develop oil and gas resources.

PDVSA President Hector Obregon said the companies see fresh exploration potential in an area where they already operate the Petroquiriquire joint venture. The project could lift crude output to about 60,000 b/d from the current production of roughly 40,000 b/d.

After recently taking over as operator of the Petroquiriquire venture, Repsol is targeting a 50% increase in production over the next 12 months and aims to triple output within three years, according to the reports.

Alongside plans to expand oil production, the companies agreed to further evaluate offshore gas opportunities. The studies will focus on gathering additional reservoir data and advancing technical assessments of Venezuela's natural gas resources, according to the reports.

Repsol and PDVSA did not immediately respond to' request for comment.

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