XRG has picked up a stake in a gas licence holding more than 4 trillion cubic feet of proven resources, its first move into Venezuela and a new step in ADNOC's push to build an Atlantic Basin gas position.

The deal

XRG, ADNOC's international energy investment company, is entering Venezuela through the award of the offshore Loran licence by the Bolivarian Republic of Venezuela, along with a transfer of interest from PDVSA Gas. Subject to customary regulatory approvals, XRG will hold an interest in the licence alongside bp and UCC. The licence contains more than 4 trillion cubic feet of proven gas resources, the most conservative category of resource estimate, covering volumes assessed with the highest confidence of being recoverable.

Partners and geology

XRG said the stake gives it a significant position in the region, with an equal interest alongside bp and UCC and a potential route to market through established infrastructure. Loran forms part of the wider Loran-Manatee offshore gas accumulation, which straddles the maritime boundary between Venezuela and Trinidad and Tobago. XRG referred to the award as "Loran phase 2," building on its strategy to establish a gas and LNG platform across Latin America.

Mohamed Al Aryani, XRG's president of international gas, said the company aims to "invest with partners in advantaged resources with access to established infrastructure." The entry followed close collaboration with the government of the Bolivarian Republic of Venezuela, whose engagement helped establish the framework for XRG's participation in Loran.

Part of a wider gas platform

XRG said the deal complements its existing gas and LNG portfolio across North America, South America, Africa, the Caspian and the Middle East:

  • Rio Grande LNG in the United States
  • Argentina LNG (subject to customary regulatory approvals)
  • Egypt, through Arcius Energy
  • Azerbaijan's Absheron field and Southern Gas Corridor
  • Turkmenistan's Offshore Block 1
  • Mozambique's Area 4 concession

What's still pending

XRG's participation in Loran phase 2 remains subject to a definitive licence, development arrangements, government and regulatory approvals, and applicable international sanctions and compliance requirements.