Repsol is expected to announce the deal this Thursday, the FT added, citing a source familiar with the matter.
The agreement will include plans to triple production from its Venezuelan oil operations within three years and establish a "guaranteed" payment system to circumvent previous issues where Caracas defaulted on payments, according to the report.
Reuters was unable to immediately verify the information. Repsol did not immediately respond to a Reuters request for comment.
Venezuela holds some of the world's largest oil reserves but suffers from crumbling energy infrastructure.
In 2023, Repsol reached an agreement with Venezuela to continue operating its facilities in the country. The deal subsequently lapsed after U.S. President Donald Trump revoked licenses granted to Repsol and other Western firms to operate in the nation.
Following the U.S. recognition of President Nicolas Maduro's administration in January, Washington eased sanctions on Venezuela's energy sector, issuing general licenses that allow international energy companies to operate oil and gas projects in the OPEC member state.
(Reporting by Disha Mishra in Bangalore; editing by Sherry Jacob-Phillips; Spanish editing by Maria Bayarri Cardenas)
