KEY POINTS
- Shell and Venezuela have signed agreements to develop the 7 Tcf Loran offshore gas field.
- The project will support gas production for Trinidad and Tobago’s LNG industry.
- Venezuela hopes the deal will strengthen its ambitions to become a major natural gas exporter.
British energy giant Shell has signed a major agreement with Venezuela to advance the development of the Loran offshore natural gas field, which holds an estimated seven trillion cubic feet (Tcf) of reserves and extends across maritime boundaries with Trinidad and Tobago.
The agreement is expected to support production from the cross-border Dragon gas field and strengthen plans to supply natural gas to Trinidad and Tobago for processing into liquefied natural gas (LNG).
The deal forms part of a broader package of agreements aimed at boosting Venezuela’s oil and gas sector and attracting foreign investment. Venezuelan officials described the move as a significant step towards transforming the country into a major gas exporter.
The Loran field, which has remained undeveloped for more than two decades, contains seven reservoirs, six of which are shared with Trinidad and Tobago. Shell has been seeking to accelerate development of the field, with plans to begin gas production as early as 2027.
Venezuela’s Acting President Oversaw the Signing of Documents
Venezuela’s acting president, Delcy RodrÃguez, oversaw the signing of the agreements and described the licence granted to Shell for the first phase of exploration and production as a historic milestone. The arrangement also covers the development of the Carito and Pirital production units in the eastern state of Monagas.
Shell and Venezuela had earlier signed preliminary agreements this year to advance several oil and gas projects. The latest deal reinforces Shell’s position as one of the key foreign investors participating in the revival of Venezuela’s energy industry.
In addition to Loran, Shell is involved in the neighbouring Dragon gas field, which contains an estimated 4.2 Tcf of reserves. Gas from both projects is expected to be transported to Trinidad and Tobago, where it will be converted into LNG for export to international markets.
The development is expected to help address gas shortages in Trinidad and Tobago and increase regional energy supplies, while providing Venezuela with a new source of export revenue.
