Eni CEO: Eni can receive Venezuelan oil as payment for gas

Eni CEO, Eni, said that Venezuela is now able to pay for the gas it receives from the Italian company with oil, thanks to recent easing of U.S. sanctions. This has helped to resolve a situation where the Latin American nation was left with a huge debt to Eni.

"That was a huge upside. Before, we were stuck for nearly a year. This led to a 'build-up in our outstanding', Claudio Descalzi said during a call following the results.

Descalzi confirmed that Venezuela owes a debt of around $3 billion to the Italian group. He was referring primarily to the natural gas produced by the Perla offshore field, the sole active offshore gas project operating in Venezuela. It is run by Eni and Spain’s Repsol.

The CEO stated that the company is working with U.S. group?on joint ventures?to increase oil production at Junin in the Orinoco belt,?and Corocoro where Eni already has a presence.

He said that a 'ramp-up' in production could help the company recoup its Venezuelan credits more quickly.

Descalzi said that Eni would be able to export a part of the gas produced by?the Perla plant in?Europe. This will help replace the liquefied gas supplies previously coming from Russia. (Additional reporting by Marianna Pararaga; editing by Alvise Armllini)

(source: Reuters)