XRG, ADNOC's international energy investment company, has entered Venezuela by taking an interest in the offshore Loran gas licence awarded by the Bolivarian Republic of Venezuela. XRG holds an equal interest alongside bp and UCC, subject to customary regulatory approvals. PDVSA Gas transferred its interest in the licence to make the entry possible.
What the licence holds
The Loran block contains more than 4 trillion cubic feet of proven gas resources. It forms part of the wider Loran-Manatee offshore gas accumulation, which straddles the maritime boundary between Venezuela and Trinidad and Tobago. XRG says the position comes with a potential route to market through infrastructure already established near the field.
Why XRG wanted in
Mohamed Al Aryani, XRG's president of international gas, said Venezuela "holds significant gas resources" and has the potential to play a greater role in meeting regional and international energy demand. XRG frames the move as part of a strategy to invest with partners in resources that already have infrastructure and a route to market, rather than build from scratch. The company says the entry followed collaboration with the Venezuelan government, whose engagement helped set the framework for XRG's participation.
Fits a wider Latin America build-out
The Loran stake adds an upstream position to XRG's growing Latin America gas platform and strengthens its footprint in the Atlantic Basin. XRG already holds positions in Rio Grande LNG in the United States and in Argentina LNG, the latter also subject to regulatory approval. Beyond the Americas, XRG's gas and LNG portfolio spans Egypt through Arcius Energy, Azerbaijan's Absheron field and Southern Gas Corridor, Turkmenistan's Offshore Block 1, and Mozambique's Area 4 concession, reaching into the Middle East and Africa as well as the Caspian.
What still has to happen
XRG's participation in what it calls Loran phase 2 depends on a definitive licence and development arrangements, government and regulatory approvals, and compliance with international sanctions requirements.
