Eni S.p.A. announced on May 4 2026 that it had restarted lifting Venezuelan crude oil in April of the same year as a payment‑in‑kind for gas produced in the country. The lift follows a March 2026 agreement between PDVSA and Cardon IV, the joint venture between Eni and Repsol, and marks the first Venezuelan‑origin crude shipment lifted in April.
The restart allows Eni to convert gas output into oil volumes, improving liquidity and reducing the need for external financing. At the end of 2025, Eni was owed approximately $3.3 billion by PDVSA, including about $1 billion in accrued interest. Eni reported a recoverable value of €880 million for these receivables, and the payment‑in‑kind arrangement is a key tool for recovering that balance.
Eni’s ability to lift oil had previously been constrained by U.S. sanctions. Since January 2026, the U.S. Treasury’s Office of Foreign Assets Control has issued general licenses easing sanctions on Venezuelan oil, enabling the transaction. This regulatory shift is a primary enabler of the restart.
In the broader context, Eni’s 2025 results were strong, with an adjusted net income of €4.99 billion and cash flow from operations of €12.5 billion, and a low gearing ratio of 14%. However, the company’s Q1 2026 results missed analyst expectations for earnings per share and revenue, indicating short‑term pressure. The lift signals Eni’s continued engagement in Venezuelan assets and proactive receivables management amid geopolitical risks.
The payment‑in‑kind arrangement demonstrates Eni’s strategy to use gas production to offset financial exposure, improving cash flow and strengthening its upstream position. By recovering significant receivables, Eni supports its broader transition to cleaner energy while maintaining a robust upstream portfolio.
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