Venezuela Grants Licenses for Natural Gas Development in Loran Field
What happened
Venezuela granted licenses for foreign companies to search for and produce natural gas in the Loran field. The permits were granted to British Petroleum, XRG of the United Arab Emirates, and UCC. Additionally, Shell received a license to operate in a separate area of the Loran field, as the government opened its energy sector under U.S. pressure.
Why it matters
The government's opening of the energy sector and the resulting agreements with foreign companies could lead to an influx of investment into Venezuela. This reform follows the easing of sanctions by the United States, which allowed foreign firms to work in the country's natural resource sector.
The Venezuelan government has enacted new regulations concerning the oil sector.
Who's involved
- VenezuelaThe geopolitical state granting licenses for resource development.
- ShellBritish multinational company granted a license to work in the Loran field.
- UCCCompany granted a license to conduct business and develop natural gas in Venezuela.
- Delcy RodriguezActing President of Venezuela who oversaw the energy sector reforms.
Who could feel it
Possible knock-on effectsThese are possibilities Brind reasoned out, not predictions, and not advice. Most are not stated in any report.
- UCCSpeculative
UCC might gain a new operational base and revenue stream through the license grant in Venezuela.
- ShellSpeculative
Shell could benefit from the direct license grant for gas production in the Loran field.
- VenezuelaSpeculative
Venezuela could see regulatory action and investment influx from foreign companies.
- United Arab EmiratesSpeculative
The United Arab Emirates might see its company benefit from the license to develop natural gas reserves.
Possible ripples
Who this could reach next, traced step by step from the reporting. Possibilities worth considering, not forecasts.- TotalEnergies may gain exposure through new Venezuelan gas venturesTotalEnergies may benefit from new gas ventures in VenezuelaPossible
- ExxonMobil faces increased competition as Venezuela opens its energy sectorExxonMobil faces increased competition as Venezuela opens its energy sectorPossible
- PDVSA's control may shrink as Venezuela opens energy sectorPDVSA's operational control may shrink as Venezuela opens energy sector to foreign firmsPossible
How it developed
Newest first. Tap a step to see who reported it.- Stuart Young, former energy minister, discussed gas agreements with Venezuela, while also accusing the UNC of misleading the public.Sub-event
- The Venezuelan government has granted an offshore natural gas concession, involving the BP/XRG/UCC consortium.Sub-event
- Shell and partners have commenced joint gas production in the Loran Field as part of Venezuela's energy sector opening.Sub-event
U.S. pressure drives Venezuelan energy reform, granting Shell and UCC licenses for gas development in Loran.1 source