BP, XRG, and UCC on 4 tcf Venezuelan gas quest as offshore development gathers pace

August 14, 2026, by Melisa Cavcic

UK-headquartered energy giant BP and its partners, ADNOC’s XRG and UCC Oil and Gas Holding, have secured a key license off the coast of Venezuela in a push to unlock 4 trillion cubic feet (tcf) of proven gas resources.

A man climbing down a ladder on an offshore platform — Illustration; Source: BP

BP and the government of the Bolivarian Republic of Venezuela have signed agreements to advance offshore gas development, including the award of an exploration and production license for the second phase of the Loran field in the Plataforma Deltana area, which contains an estimated 4 trillion cubic feet of recoverable gas resources.

The UK energy giant has been granted the license for Loran Phase 2 in partnership with XRG, ADNOC’s international energy investment company, and UCC Oil and Gas Holding, with each party holding an equal working interest share. However, BP will operate the development. The Loran Phase 2 development is expected to be delivered in parallel with Phase 1.

Meg O’Neill, Chief Executive Officer (CEO) of BP, commented: “The award of the Loran Phase 2 license 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 we have made together.

“BP has a long-standing presence in the region and deep experience developing major gas resources. Together, these agreements provide a strong foundation to progress Venezuela’s offshore gas potential and unlock the next phase of development.”

The license award follows the memorandum of understanding (MoU) between the company and the country’s government in April 2026, which established a cooperation framework for exploration and future development opportunities in the Plataforma Deltana area, including the Loran offshore gas field.

View on Offshore-energy.

BP and the Venezuelan government have also signed a memorandum of understanding covering the Carúpano East Block in the Caracolito sub-basin of the Mariscal Sucre maritime area, which establishes a framework for evaluating exploration opportunities and advancing discussions on potential future development of the offshore area.

The agreements were finalized during an official visit to Venezuela by David Campbell, BP’s Senior Vice President of Latin America and the Caribbean, and the company’s CEO. The Carúpano MoU was signed by Paula Henao, Venezuela’s Minister of Hydrocarbons, and BP’s Campbell.

In a separate statement, XRG confirmed its entry into Venezuela through the award of the offshore Loran license and the transfer of interest in the permit by PDVSA Gas, subject to customary regulatory approvals. The license would add meaningfully to ADNOC’s growing Latin America platform while enhancing its position in the Atlantic Basin.

View on Offshore-energy.

Mohamed Al Aryani, President of International Gas at XRG, commented: “Venezuela holds significant gas resources and has the potential to play a greater role in meeting regional and international energy demand. Our entry through Loran reflects XRG’s strategy to invest with partners in advantaged resources with access to established infrastructure and clear routes to market.

“By connecting Venezuelan gas with established infrastructure, we aim to support the responsible development of these resources, strengthen regional energy integration and create long-term value for Venezuela, our partners and local communities.”

Loran forms part of the wider Loran-Manatee offshore gas accumulation, which straddles the maritime boundary between Venezuela and Trinidad and Tobago. This investment enhances XRG’s position in the Atlantic Basin and complements its growing gas and LNG portfolio across North America, South America, Africa, the Caspian, and the Middle East.

The company’s portfolio includes Rio Grande LNG in the United States; Argentina LNG once customary regulatory approvals are obtained; Egypt acreage through Arcius Energy; Azerbaijan’s Absheron field and Southern Gas Corridor; Turkmenistan’s Offshore Block 1; and Mozambique’s Area 4 concession.

XRG’s participation in Loran Phase 2 will be subject to the definitive license and development arrangements, applicable governmental and regulatory approvals, and all international sanctions and compliance requirements.