Italian energy giant Eni to sustain gas production in Venezuela Despite US ban on oil payments

Italian oil and gas company Eni will continue its gas production operations in Venezuela despite new restrictions imposed by the United States, which prohibit Venezuela’s state oil company, PDVSA, from paying for gas deliveries with crude shipments. 

Eni also confirmed ongoing negotiations with Washington to resolve the issue, Caliber.Az reports via Italian media.

Speaking at an event in Ravenna, Eni CEO Claudio Descalzi addressed the situation, stating, “We will continue production for now, because we cannot stop. If we stop production, we risk creating a social crisis. We are waiting because we are negotiating with Washington.”

Eni had earlier confirmed that it had been officially notified by US authorities that oil shipments from PDVSA can no longer be used as payment for gas produced in Venezuela. However, Descalzi clarified that the group’s gas production is strictly for domestic use and essential for Venezuelan families.

“In Venezuela, we are producing gas, not oil. We produce it solely for the domestic market, as it is intended for families,” Descalzi said. “While always respecting rules and sanctions, we have worked with US authorities to obtain deferrals — the contract allows for that. Since they cannot pay us in dollars or cash, they compensate us with goods that are then sold on the US market. So, each time, a deferral is necessary to make this work. It doesn’t really change the situation much.”

He also noted that the Venezuelan oil previously received by Eni is refined in the United States, in facilities specifically designed to process that type of crude.

Meanwhile, Venezuelan President Nicolás Maduro has declared an economic emergency in response to what he described as a “trade war” triggered by new US tariffs. The emergency measures will take effect on April 8 and are intended to shield the national economy from the broader effects of international sanctions.

"Venezuela has a plan to protect its economy after the sanctions imposed by the United States. A global trade war awaits us," Maduro announced in a televised address on April 8 on Venezolana de Televisión.

He accused the US of violating global economic norms, undermining international trade laws, and damaging the authority of the World Trade Organization (WTO). According to Maduro, the global financial system is suffering, particularly American citizens.

The Venezuelan leader emphasized that the government is monitoring the consequences of the evolving trade conflict closely, with plans to implement countermeasures to defend the national economy.

"With this measure, we confirm our commitment to resisting international sanctions and ensuring the economic well-being of the country, thereby strengthening strategies that will allow us to move towards a more prosperous future," Maduro said.

By Tamilla Hasanova