British energy giant Shell has been granted a licence to explore and export natural gas in Venezuela, marking a significant step in the country’s efforts to attract foreign investment into its vast energy sector.
The announcement was made by acting president Delcy Rodriguez, who said Shell will lead the development of the offshore Loran gas field, a project that had remained dormant for more than two decades. The field contains an estimated seven trillion cubic feet of natural gas reserves and extends into the maritime territory of Trinidad and Tobago.
Rodriguez described the approval as a major milestone for Venezuela’s ambitions to become a significant natural gas exporter.
“We are taking a historic step by signing this licence for phase one of the Loran field’s development plan,” she said during a ceremony broadcast on state television.
The move comes as Venezuela accelerates efforts to revitalise its energy industry and capitalise on some of the world’s largest hydrocarbon reserves. In recent months, the government has introduced reforms aimed at attracting international energy companies and boosting oil and gas production.
Earlier on Thursday, Shell representatives visited facilities at the Muscar Operational Complex in Monagas state, one of the country’s key gas processing and distribution centres operated by state-owned oil company PDVSA.
Shell is also involved in the Dragon gas project, another major offshore development. In 2023, Venezuela, Trinidad and Tobago and Shell signed agreements to facilitate production and exports from the field, which contains approximately 4.2 trillion cubic feet of natural gas reserves.
The Loran and Dragon projects are expected to help Venezuela launch offshore gas exports, with supplies likely to be processed through liquefied natural gas facilities in Trinidad and Tobago.
Venezuela has also expanded partnerships with several major international energy companies, including BP and Repsol, as part of a broader strategy to revive the country’s oil and gas industry and strengthen its position in global energy markets.
