bp and the government of Venezuela have signed agreements to advance major offshore natural gas developments, including the granting of an exploration and production licence for Phase 2 of the Loran field in the Plataforma Deltana region.
The Loran Phase 2 field holds an estimated four trillion cubic feet of recoverable gas resources. The British oil and gas major will act as operator of the venture in equal partnership with XRG, the international energy investment arm of Abu Dhabi National Oil Company (ADNOC), and UCC Oil and Gas Holding LLC, with each company securing an equal working interest share.
The Loran Phase 2 development is expected to be delivered in parallel with Phase 1. The agreement builds upon a preliminary memorandum of understanding (MoU) signed between BP and the Venezuelan government in April, which established a framework for energy exploration and development in the Plataforma Deltana area.
In addition to the Loran licence, both parties signed a separate MoU covering the Carúpano East Block in the Caracolito sub-basin of the Mariscal Sucre maritime territory.
This second agreement creates a framework to assess exploration potential and evaluate future commercial offshore development.
Commenting on the agreements, bp CEO Meg O’Neill said the licence award represented a vital step in unlocking the country’s energy potential.
“The award of the Loran Phase 2 licence is an important step forward. It builds on the strong collaboration we have established with the Government of Venezuela and our partners and reflects the progress we have made together,” O’Neill said.
“bp has a long-standing presence in the region and deep experience developing major gas resources.
“Together, these agreements provide a strong foundation to progress Venezuela’s offshore gas potential and unlock the next phase of development.”
