Repsol is returning to Venezuela after securing new licenses to resume operations in the country. The Spanish major plans to increase crude oil production by 50% from current levels, with a long-term goal of tripling output over the next three years. This move follows the selective lifting of U.S. sanctions after the administration removed President Nicolas Maduro from power and took him to the U.S. to stand trial for drug trafficking, while effectively taking over Venezuela's oil industry. Context Venezuela's oil industry has been significantly impacted by decades of sanctions and mismanagement. In the 1990s, the country pumped around 3 million barrels of crude daily, but production has since declined to roughly 45,000 barrels daily. Recently, Venezuela produced an average of 1.1 million barrels of crude daily, up from 942,000 barrels daily in February, according to a PDVSA presentation cited by Reuters. Industry Trends Oil majors are returning to the country that is estimated to hold the world's most abundant oil reserves. Chevron has been expanding since the U.S. takeover, closing an asset swap deal with PDVSA that would see its stake in their joint venture Petroindependencia rise to 49%. Shell is in talks to develop gas resources, specifically the Dragon project—an offshore gas field containing an estimated 4.5 trillion cu ft in reserves, with plans to feed the gas into the company's LNG facility in Trinidad and Tobago. Now, Repsol is joining this trend. Outlook With U.S. sanction relief easing access to capital and technology, Repsol is poised to accelerate drilling and production ramp-ups. The company's plan to triple output aligns with the broader trend of major oil companies expanding their presence in Venezuela's abundant but under-developed reserves.