ADNOC's XRG Enters Venezuela Through Loran Offshore Gas Concession

ADNOC's XRG Enters Venezuela's Loran Offshore Gas Concession

XRG, the Abu Dhabi National Oil Company's international energy investment arm, said it has entered Venezuela by securing a stake in the offshore Loran gas concession from the country's national oil company. The move places XRG alongside BP and UCC in a project that the announcement says contains more than 4 trillion cubic feet of proven gas resources.

The Loran field is part of the broader Loran-Manatee offshore gas reservoir, which straddles the maritime boundary between Venezuela and Trinidad and Tobago. XRG said the entry follows the relevant regulatory approvals and that its focus is to connect Venezuelan gas resources to existing infrastructure in order to supply regional and international energy demand.

Mohamed Al Aryani, head of XRG's international gas platform, framed the investment as part of an effort to develop the resource responsibly and create long-term value for Venezuela and the company's partners. He said Venezuela's gas endowment can play a larger role in meeting regional and international demand.

Completion is not yet unconditional. XRG said its participation still requires final concession and partnership agreements, as well as remaining government and regulatory approvals and compliance with all relevant laws and licensing requirements.

What Loran Adds to XRG's Global Gas and LNG Platform

XRG's Latin America gas platform gets a resource anchor

The Loran stake is explicitly described as part of XRG's plan to build a gas and LNG platform in Latin America. It extends a portfolio that already includes Rio Grande LNG in the United States, an LNG project in Argentina, gas interests in Egypt through Arcius Energy, the Absheron field and Southern Gas Corridor in Azerbaijan, offshore gas in Turkmenistan, and the Rovuma Basin in Mozambique. The common thread is not simply ownership of reserves but linking supply to existing infrastructure and customers.

The Loran-Manatee cross-border dynamic is central

Because the field lies across the Venezuela–Trinidad and Tobago maritime boundary, the project's economics are likely to depend on how the partners use existing infrastructure and how the two jurisdictions coordinate development. The announcement emphasizes access to existing infrastructure rather than building entirely new export routes. That matters in a reservoir shared between a new entrant and established regional gas infrastructure, though XRG does not specify which assets will be used or who will operate them.

BP and UCC are now partners, but the operating model is unresolved

XRG says the partners hold equal stakes, which suggests shared decision-making but also means no single owner can dictate pace or capital allocation. BP brings scale in international gas development, while UCC's role is not detailed in the announcement. Until the final concession and partnership agreements are signed, the precise equity shares, operator, cost recovery and offtake arrangements remain open questions.

Interpretation: this is a strategically consistent acquisition of a large gas resource, but its value is contingent on closing documents and regulatory conditions that are not yet complete.

Next Steps for XRG, BP, UCC and Investors Watching Loran

The practical work now shifts from announcement to execution. The actions below follow directly from the conditions and structure described in the announcement.

• For XRG management: Complete the final concession and partnership agreements with Venezuela's national oil company and secure the outstanding government and regulatory approvals; until that is done, the Loran stake remains conditional rather than banked.
• For BP and UCC: Clarify the operator and cost-sharing structure for the equal-stake partnership, especially how development will be coordinated across the Venezuela–Trinidad and Tobago maritime boundary.
• For investors: Treat the more than 4 trillion cubic feet as a resource figure, not an attributable net ownership or production number; revised economics should follow disclosure of final equity interests, capital commitments and offtake access.
• For regional gas buyers and infrastructure partners: Watch whether XRG's stated approach of using existing infrastructure leads to accelerated gas availability rather than a wholly new build, because that will determine how quickly Loran volumes can reach customers.