BP has signed agreements with the Venezuelan government to advance offshore gas development, including an exploration and production licence for a new phase of the Loran field in the Plataforma Deltana area, according to Splash247. The supermajor will operate the project, which covers resources estimated at around 4 trillion cubic feet of recoverable gas, in partnership with XRG, ADNOC's international energy investment arm, and UCC Oil and Gas, with each partner holding an equal working interest.
Loran Phase 2 licence
According to Splash247, the award of the Loran Phase 2 licence marks BP's return to Venezuela's offshore gas sector alongside state-backed partners from the UAE and Qatar. The country continues to reopen its energy industry to foreign investors following the US-led operation that removed Nicolás Maduro from power, Splash247 reported. The agreements were finalised during an official visit to Venezuela by BP CEO Meg O'Neill and BP SVP for Latin America and the Caribbean, David Campbell.
"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 made. Together, these agreements provide a strong foundation to progress Venezuela's offshore gas potential and unlock the next phase of development," O'Neill said, according to Splash247.
The licence follows the memorandum of understanding BP and the Venezuelan government signed in April 2026, which established a framework for cooperation in exploration and future development opportunities in the Plataforma Deltana area, including the Loran offshore gas field, Splash247 reported.
Carúpano East Block MoU
BP and Caracas have also signed a memorandum of understanding covering the Carúpano East Block in the Caracolito sub-basin of the Mariscal Sucre maritime area, according to Splash247. This agreement establishes a framework to evaluate exploration opportunities and advance discussions on potential future development of the offshore area.
International oil companies return to Venezuela
ExxonMobil and ConocoPhillips have also started looking towards Venezuela, while Chevron remains in the country as a minority partner in Venezuela's state oil company and continues to produce crude, Splash247 reported.
Venezuela's oil output decline
Venezuela is believed to have the largest oil reserves of any country in the world, and in the late 1990s produced more than 3.5 million barrels of oil a day, making it one of the top 10 crude producers, according to Splash247. Output has since dropped significantly to around 1 million barrels a day.
| Period | Crude oil production |
|---|---|
| Late 1990s | More than 3.5 million barrels per day |
| Current | Around 1 million barrels per day |
Partnership structure
Splash247 reported that BP will operate the Loran project as a partnership with equal working interests.
| Partner | Role | Working interest |
|---|---|---|
| BP | Operator | Equal |
| XRG | Partner | Equal |
| UCC Oil and Gas | Partner | Equal |
What it means for commodity watchers
According to Splash247, the agreements provide a strong foundation to progress Venezuela's offshore gas potential. The source does not provide development timelines, production targets, or price implications. For commodity analysts tracking global gas supply, the 4 trillion cubic foot resource at Loran Phase 2 is a notable addition to Venezuela's potential upstream portfolio, while the country's crude output remains far below its late-1990s peak, according to the same report.
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