BP to sell 20% Cocuina gas stake to NGC

Offshore natural gas platform symbolizing LNG supply and gas stake sale in regional project

Key Points

01BP (BP.L) agreed to sell a 20% stake in the Venezuelan Cocuina gas area to NGC
02Cocuina-Manakin field straddles the Trinidad–Venezuela maritime border
03The field contains about 1 trillion cubic feet of gas, with 70% planned to be marketed to Atlantic LNG.
04A final investment decision on Cocuina-Manakin is expected by year-end

BP reshapes interest in Cocuina-Manakin gas field

BP (BP.L) has agreed to sell a 20% stake in the Venezuelan portion of the cross-border Cocuina-Manakin natural gas field to Trinidad and Tobago's state-owned National Gas Company (NGC). The transaction adjusts ownership in a project that spans both Venezuelan and Trinidadian waters and is seen as a significant move in regional gas development.

The Cocuina-Manakin field is reported to contain about 1 trillion cubic feet of natural gas reserves and lies across the maritime boundary between Trinidad and Tobago and Venezuela. This cross-border structure links Venezuelan acreage on the Cocuina side with the Manakin portion on the Trinidad side, creating a shared development opportunity for the two countries.

The reported stake sale in the Venezuelan portion follows Venezuela granting BP (BP.L) a licence to develop the Cocuina-Manakin field less than four months earlier. That licence enabled BP to advance planning for the Venezuelan segment, which is now being partially transferred to NGC through this 20% interest.

NGC’s growing role and existing Manakin stake

NGC already holds a 20% stake in the Manakin portion on the Trinidad side of the Cocuina-Manakin field. With the agreed acquisition of 20% in the Venezuelan Cocuina portion, NGC is set to extend its presence across both sides of the cross-border gas accumulation.

This expanded role positions NGC as a key state-owned participant in the project alongside BP, which remains a principal operator, and aligns the company more closely with the long-term development potential of the field. The combined interests on both sides of the border are intended to support coordinated development and marketing plans.

Gas marketing plans focused on Atlantic LNG

BP and NGC have agreed to market 70% of the Cocuina-Manakin project's gas to Atlantic LNG, described as Latin America's largest liquefied natural gas export facility. This planned offtake structure links new upstream gas volumes to an established regional LNG hub.

Reports state that BP owns a 45% stake in Atlantic LNG, NGC holds 10%, and Shell owns the remaining 45%. The stake sale in Cocuina and the associated gas marketing agreement therefore tie the upstream project to a liquefaction plant in which the same companies already hold significant equity positions.

Progress toward final investment decision

Development of the Cocuina-Manakin project is reported to be progressing toward a final investment decision expected by the end of the year. Work now focuses on aligning cross-border development plans, commercial arrangements, and offtake agreements needed to underpin that decision.

The combination of Venezuela’s recent licence to BP, NGC’s expanded equity position on both sides of the field, and the marketing agreement for 70% of gas volumes to Atlantic LNG forms the core framework for moving the project toward sanction. These elements collectively define the current phase of Cocuina-Manakin’s advancement.

Key Takeaways

01The Cocuina-Manakin deal consolidates NGC’s role on both the Trinidadian and Venezuelan sides of a major cross-border gas field.
02Linking 70% of the field’s gas to Atlantic LNG integrates new upstream supply with an existing regional LNG export platform.
03A final investment decision targeted by year-end depends on aligning licences, equity interests and marketing agreements now being put in place.

References