XRG Enters Venezuela's Loran Offshore Gas Licence With bp and UCC

XRG's Venezuela Entry: Loran Licence, bp and UCC

ADNOC's international energy investment arm, XRG, is moving into Venezuela through the offshore Loran gas licence, the company announced. Venezuela has awarded the licence and PDVSA Gas is transferring an interest to XRG; once customary approvals are complete, XRG will hold the position alongside bp and UCC.

The block sits within the Loran-Manatee accumulation straddling the Venezuela-Trinidad and Tobago maritime boundary. XRG says the licence contains more than 4 trillion cubic feet of proven gas resources and could provide a route to market through established infrastructure, reinforcing its Atlantic Basin presence.

Mohamed Al Aryani, XRG's president for international gas, framed the move as part of the company's strategy to invest in advantaged resources with access to infrastructure and clear routes to market. XRG already holds positions including Rio Grande LNG in the United States, Argentina LNG, Egypt's Arcius Energy, Azerbaijan's Absheron field, Turkmenistan's Offshore Block 1 and Mozambique's Area 4.

The entry remains conditional. XRG said participation in Loran phase 2 is subject to definitive licence and development arrangements, government and regulatory approvals, and compliance with all relevant international sanctions.

What Loran Adds to XRG's Atlantic Basin Gas Platform

Why Venezuela fits XRG's Latin America plan

XRG has been assembling gas and LNG positions across multiple basins, and Loran adds a large proven resource in a region where the company already has Argentina LNG and Rio Grande exposure. The attraction is not simply resource size; the block is logically connected to Trinidad and Tobago's established gas and LNG system, which could reduce the development challenge compared with a standalone greenfield project.

The bp and UCC dimension

Working alongside bp gives the project an experienced deepwater gas operator and an LNG player already active in Trinidad, while UCC provides a local counterpart. The announcement describes XRG's holding as an equal interest alongside bp and UCC, but the precise shareholding percentages and capital commitments are not disclosed. Until the definitive arrangements are published, the balance of control is an open question.

Sanctions, not geology, are the main gate

XRG has explicitly made the investment conditional on international sanctions compliance. Venezuela remains heavily sanctioned by the United States, and both financing and technology transfer for gas projects can be constrained even when commercial terms are settled. The licence may therefore advance slowly or in phases depending on the sanctions environment and US-Venezuela relations. In that sense, the announcement is a strategic option rather than an unconditional development commitment.

The Hurdles XRG and Its Partners Must Clear Before Loran Advances

For XRG, bp, UCC and the Venezuelan government, the next practical checkpoints are specific:

• Confirm the definitive agreements. XRG has an option position until the licence transfer, unitization and development terms are signed; the deal's value depends on those documents, not the announcement.
• Resolve the sanctions pathway. Development, drilling services and LNG marketing will each require sanctions-compliant vendors and financing. XRG's statement makes this a condition, so project milestones should not be assumed until the compliance route is explicit.
• For bp and UCC: align on how Loran-Manatee gas is commercialized across the Venezuela-Trinidad boundary and through which established infrastructure; this will determine project economics and timeline.
• For Atlantic Basin LNG competitors: treat Loran as a long-dated supply option, not near-term volume. The resource is proven, but the path to production runs through approvals, sanctions and infrastructure access.