British energy group BP PLC (LSE:BP.) has secured a licence to explore and develop the second phase of Venezuela’s offshore Loran gas field, marking one of the clearest signs yet that international energy companies are returning to the country after years of isolation.
BP will operate the project alongside Abu Dhabi-based XRG, the international investment arm of ADNOC, and Qatar’s UCC Oil & Gas Holding.
Each partner will hold an equal interest. Loran Phase 2 is estimated to contain 4tn cubic feet of recoverable gas resources.
BP has also signed an agreement with Venezuela to assess exploration opportunities in the Carúpano East offshore block, further expanding its presence in the country.
The deals come as Washington eases restrictions on Venezuela’s oil and gas industry following the removal of President Nicolás Maduro by US forces in January. The US Treasury has authorised Chevron, BP, Eni, Repsol and Shell to conduct specified oil and gas activities, while separate rules allow companies to negotiate new investments subject to US approval.
The reopening has attracted other major players. Shell secured rights to develop the first phase of Loran in June, while Chevron has expanded its Venezuelan operations. India’s Reliance Industries has also received US approval to resume direct purchases of Venezuelan crude.
The moves form part of a broader effort by Venezuela’s interim government and Washington to revive an industry weakened by years of underinvestment, sanctions and political turmoil.
