BP has secured a license to develop the offshore Loran gasfield in Venezuela, marking its return to the country alongside partners from the UAE and Qatar. The agreement, signed in Caracas, allows BP to operate the second phase of the Loran gas project, which is estimated to contain over four trillion cubic feet of recoverable gas resources. This development follows the removal of Nicolás Maduro from power, which has opened Venezuela's energy sector to foreign investment.
Key Details
Under the terms of the agreement, BP will work with Abu Dhabi's XRG, the international investment arm of the UAE's ADNOC, and Qatar's UCC Oil and Gas Holding, with each company holding equal stakes in the project. This collaboration is seen as a significant step in the revitalization of Venezuela's oil and gas industry, which has struggled in recent years. BP's Chief Executive Meg O'Neill described the license as "an important step forward" in the company's relationship with Caracas.
Background
The Loran gasfield is part of a larger accumulation that includes the Manatee field, which is being developed by Shell on the Trinidadian side. BP's engagement in Venezuela is part of a broader strategy to expand its operations in Latin America and leverage existing infrastructure in the region. The company also signed a memorandum of understanding for potential exploration in the Carúpano East Block, which will further enhance its footprint in Venezuelan offshore gas development.
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The developments are likely to influence energy markets, particularly in natural gas, as BP's involvement could lead to increased production capacity in the region. Investors will monitor how this partnership affects supply dynamics and pricing in the global gas market. Watch for updates on regulatory approvals and further developments in the exploration of the Carúpano East Block.
Based on reporting by: theguardian.com, euronews.com