Venezuela Lands Billions in Oil Deals as Industry Rushes Back
Canadian Natural Says Pipeline Needed to Unlock Oil Sands Growth Irina is a writer for Oilprice.com with over a decade of experience writing on the oil and gas industry.
International companies are flocking back to Venezuela, with deals worth billions getting closed under U.S.
management of the country’s oil resources.
Venezuela’s oil exports hit a seven-year high in March, and this may be just the beginning of a major rebound.
Big Oil was quick to signal interest in Venezuela’s oil—and natural gas—almost as soon as the United States ousted President Nicolas Maduro and effectively took over Venezuela’s oil industry.
As early as January, Shell and BP were reported to seek a license to move forward with gas projects in Venezuela and Trinidad and Tobago.
For Shell, the main project of interest was Dragon, an offshore field that contains an estimated 4.5 trillion cubic feet of natural gas that Shell plans to eventually liquefy and export from its Atlantic LNG facility in Trinidad and Tobago.
BP, meanwhile, last weeksigneda deal with PDVSA to develop the Cocuina-Manakin field that lies along the maritime border between Venezuela and Trinidad and Tobago.
The supermajor and the Venezuelan state energy company will also explore together for gas in the Loran gas field.
Related: Shell Boosts Dividend After Strong Q1 Performance The Loran-Manatee deposit is shared by Venezuela and Trinidad and Tobago, with 7.3 trillion cubic feet of gas in the Venezuelan portion and 2.7 trillion cubic feet in the Trinidad portion.
The Cocuina-Manakin field contains an estimated 1 trillion cubic feet in reserves.
Spain’s Repsol is also returning to Venezuela after it signed a new deal with the country’s government, with plans to increase crude oil production in the country by 50% from current levels.
| Product | Price | Change |
|---|---|---|
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| NPK 16-16-16 | $460/MT | ▼ -0.28% |
| Nat Gas TTF | $15.42/MMBtu | ▲ +0.92% |
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