Published: · Region: Latin America · Category: markets

BP’s Venezuela Gas Bet Raises New Energy Leverage for Caracas—and Geopolitical Questions

Venezuela has awarded BP and partners from the UAE and Qatar a concession to develop the second phase of the offshore Loran gas field, estimated at 4 trillion cubic feet, while Shell advances the first phase and the neighboring Dragon field. The deals could turn Caracas into a more significant gas supplier just as global markets seek diversification — and test how far Western majors are willing to go in re‑engaging with a sanctioned petrostate.

BP is deepening its exposure to one of the world’s most politically fraught energy frontiers, securing a stake in Venezuelan offshore gas that could reshape flows in the Caribbean and Atlantic basins if the projects move ahead as planned. Caracas has granted BP, UAE-based XRG and Qatar’s UCC a concession to drill the second phase of the Loran field, whose reserves are estimated at 4 trillion cubic feet, while Shell pushes forward on both Loran’s first phase and the similarly sized Dragon field. The announcement, confirmed in Caracas on 15 August, marks one of the most significant moves by a Western major into Venezuelan hydrocarbons since years of U.S. sanctions…

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