XRG enters Venezuela with stake in major offshore gas licence
XRG, ADNOC’s international energy investment company, has entered Venezuela’s energy sector after securing an interest in the offshore Loran gas licence, expanding its growing gas and LNG portfolio across Latin America and the Atlantic Basin.
The company said on Thursday that the Bolivarian Republic of Venezuela had awarded the Loran licence, with PDVSA Gas transferring an interest in the licence to XRG. Subject to regulatory approvals, XRG will hold an equal interest alongside bp and UCC.
The offshore licence contains more than 4 trillion cubic feet (tcf) of proven gas resources and forms part of the wider Loran-Manatee gas accumulation, which straddles the maritime boundary between Venezuela and Trinidad and Tobago.
The investment gives XRG exposure to one of Latin America’s significant undeveloped offshore gas resources, with the potential to connect production to existing infrastructure and established routes to market.
Strengthening the Venezuelan market
“Venezuela holds significant gas resources and has the potential to play a greater role in meeting regional and international energy demand,” said Mohamed Al Aryani, President, International Gas at XRG.
“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,” Al Aryani added.
Al Aryani said connecting Venezuelan gas with existing infrastructure could support the development of the resources while strengthening regional energy integration and generating long-term value for Venezuela, project partners and local communities.
Expanding Latin American assets
The Loran Phase 2 investment builds on XRG’s push to establish a broader gas and LNG platform across Latin America. The company said its participation was enabled by collaboration with the Venezuelan government, which helped establish the framework for its entry into the licence.
The deal also marks another step in XRG’s rapid international expansion as the company builds a portfolio of gas assets spanning several major producing regions.
In the Americas, XRG has an interest in the Rio Grande LNG project in the United States and has also agreed to participate in Argentina LNG, subject to customary regulatory approvals.
Its wider international portfolio includes Egypt through the Arcius Energy joint venture, Azerbaijan’s Absheron gas field and Southern Gas Corridor, Turkmenistan’s Offshore Block 1 and the Area 4 concession in Mozambique.
Together, the investments form part of XRG’s strategy to develop an international gas platform connecting large-scale resources with infrastructure and customers across global markets.
The Venezuela entry also strengthens XRG’s position in the Atlantic Basin, where the company is building exposure to gas and LNG supply across North America, South America, and Africa, alongside its positions in the Caspian and Middle East.
Development of Loran Phase 2 remains subject to definitive licence and development arrangements as well as applicable government and regulatory approvals.
XRG said its participation would also remain subject to all relevant international sanctions and compliance requirements.
