BP is returning to Venezuela, securing a licence to develop the offshore Loran gas field alongside state-backed partners from the United Arab Emirates and Qatar. The agreement, signed in Caracas on Thursday, gives the British energy giant operatorship of the project's second phase, which holds more than four trillion cubic feet of proven gas reserves.
Abu Dhabi's XRG and Qatar's UCC Oil and Gas Holding will each take an equal working interest, with BP acting as operator. The licence remains subject to regulatory approvals, but the deal is the clearest signal yet that the reopening of Venezuela's energy industry to foreign capital is gathering pace.
A strategic return
The Loran field forms the Venezuelan portion of the Loran-Manatee accumulation, which straddles the maritime boundary with Trinidad and Tobago and holds roughly 10 trillion cubic feet of recoverable gas in total. Shell won the licence for the first phase in June and is separately developing the Manatee field on the Trinidadian side, where first gas is expected next year.
BP says both Venezuelan phases will now be developed in parallel. The company also signed a memorandum of understanding covering exploration at the Carúpano East Block. The agreements were concluded during a visit to Caracas by BP's chief executive, Meg O'Neill, and David Campbell, senior vice president for Latin America and the Caribbean.
For XRG, the international investment vehicle of Abu Dhabi's ADNOC, and UCC, a unit of the Qatari conglomerate of the same name, this marks their first entry into Venezuela. PDVSA Gas, the state producer's gas arm, transferred part of its interest to XRG as part of the deal.
Opening under US pressure
The licences are the product of a bargain struck with Washington. After Maduro was seized by US forces in January, interim president Delcy Rodríguez rewrote the country's energy law at the Trump administration's urging, opening the world's largest proven oil reserves to foreign firms. In return, the US relaxed sanctions that had frozen most Western investment, including the licences it revoked from BP, Shell and Chevron in 2025.
Eni, Repsol and Shell have all signed agreements since. The awards process stalled after the earthquakes of 24 June, which killed more than 6,300 people, and resumed only on Thursday, when the three Loran permits were issued and the agreements signed.
“I have a special interest in gas to promote national development,” Rodríguez said at the ceremony, which was broadcast on state television.
BP is not a newcomer to Venezuela. It held a licence for the Cocuina field from 2024, before Washington withdrew its permission to use it. The company's return underscores the broader geopolitical shifts in the region, as European and Gulf energy firms compete for access to Venezuela's vast resources. The development also comes amid heightened European focus on energy security, with the continent still grappling with the fallout from the Russian invasion of Ukraine and the subsequent US sanctions on Russian energy revenues.
Analysts note that the involvement of Gulf partners adds a new dimension to Venezuela's energy diplomacy, potentially balancing the influence of Washington and Beijing. The Loran project is expected to supply gas to domestic markets and possibly for export, with Trinidad and Tobago already a key regional hub.
As the post-Maduro era unfolds, the pace of foreign investment will be a critical test for the interim government's ability to revive an economy that was battered by years of mismanagement and sanctions. For BP, the deal represents a calculated bet on Venezuela's long-term potential, even as the country's political future remains uncertain.
