BP-led group wins Loran gas licence in Venezuela

On August 13, 2026, Venezuela awarded the licence for Phase II of the offshore Loran gas field to a consortium led by BP (BP.L) alongside UAE firm XRG and Qatar’s UCC. The decision marks a significant new commitment to develop Venezuelan offshore natural gas resources through an international partnership.

BP was designated operator of the Loran Phase II project under the new licence. The reported arrangement provides for BP, XRG and UCC to hold equal interests in the Phase II licence, aligning the three partners on governance and economic participation in the planned development.

The award and associated agreements were announced during a ceremony in Caracas on August 13, which was broadcast on state media. The public event underscored the importance placed by Venezuelan authorities on attracting foreign investment and technical expertise to the Loran offshore gas field.

Reporting linked to the licence award cited an estimate that the Loran field contains about 7.5 trillion cubic feet of non-associated gas. This figure illustrates the potential scale of the resource base that could underpin the Phase II development if the project advances as planned.

Other accounts referenced different resource figures for the broader Loran area, indicating some variation in reported estimates around the time of the announcement. Despite these differences, sources consistently describe Loran as a large offshore gas field central to Venezuela’s efforts to expand gas production.

XRG, described as ADNOC’s international energy investment company, stated that its participation in Loran Phase II is conditional. The company highlighted that it must first conclude definitive licence and development arrangements before its entry into the project is finalized.

In addition to commercial agreements, XRG said its involvement is subject to governmental and regulatory approvals. The company also stressed the need to meet applicable international sanctions and broader compliance requirements, signaling that implementation of the licence will proceed within a structured legal and regulatory framework.

The expectation of equal interests among BP, XRG and UCC in the Phase II licence is therefore contingent on these conditions being satisfied. Until those steps are completed, the consortium’s ownership structure and project execution timeline remain dependent on the outcome of ongoing approvals and negotiations.

The Loran Phase II licence award introduces UAE and Qatari firms into a Venezuelan offshore gas project through the BP-led consortium. Their planned participation, alongside a major international oil and gas company as operator, highlights renewed engagement with Venezuela’s offshore gas sector.

The combination of a sizeable reported resource at Loran and the involvement of international partners positions the Phase II project as a notable element of Venezuela’s strategy to develop non-associated gas. How quickly the project advances will depend on the completion of definitive agreements, regulatory clearances and adherence to international sanctions and compliance standards.