Venezuela's Loran Gas
Venezuela and Shell Sign Five Agreements to Develop Loran Gas Field and Boost Exports.
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Key Points
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Venezuela said the Loran field has seven reservoirs (six transboundary with Trinidad and Tobago) and is part of the larger Loran-Manatee system; reserves are estimated at about ten trillion cubic feet, mostly in Venezuelan waters. The project was previously stalled after the field was “de-unitized” in 2019, and Shell expects to start production in 2027 via infrastructure connected to Trinidad.
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Venezuela’s Hydrocarbons Minister said the “first service and purchase orders have been signed,” describing near-term activity as “surface barrels” tied to development of the Monagas deposits.
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Delcy Rodríguez framed the Hydrocarbons Law changes as enabling new negotiation mechanisms, describing them as “complementarity” and a “win-win agreement,” and said the law allows “flexible business agreements” so negotiations can boost production and resource use “for the people of Venezuela.”
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Shell’s President of Exploration and Production, Peter Costello, called the signed agreements “a wonderful achievement” for both Venezuela and Shell during the event broadcast on state TV (VTV).
Venezuela has granted Shell a license to explore and produce gas in the Loran offshore field — a reservoir holding an estimated ten trillion cubic feet of gas that sat untouched for more than two decades, according to MarketScreener. Acting President Delcy Rodríguez called the deal "a historic step," saying the field will now supply gas for export, especially to support Trinidad and Tobago's LNG and petrochemical industries.
The signing covered five separate agreements in total. Beyond the Loran license, the deals include contracts for oilfield work in Monagas state and equipment to cut gas flaring, according to LSE.
Loran Field Sat Idle for Over Two Decades
The Loran field straddles the maritime border between Venezuela and Trinidad and Tobago. It has seven reservoirs — six of them shared across that border — as part of the larger Loran-Manatee system, according to MarketScreener. Venezuela holds the larger share, with most of the ten trillion cubic feet of estimated reserves sitting in its waters.
The field was "de-unitized" in 2019, meaning the two countries split their portions of the field apart. That move effectively stalled development. Shell now plans to start production in 2027 using infrastructure already connected to Trinidad, making that island nation the gateway for Venezuelan gas exports.
Five Deals Cover Gas, Oilfields, and Flaring Cuts
Shell's President of Exploration and Production, Peter Costello, called the signed agreements "a wonderful achievement" for both Venezuela and Shell. The event was broadcast on state television. Beyond the Loran gas license, the package includes technical and financial cooperation contracts for oilfields in Monagas North, according to MarketScreener.
Two more agreements cover the Carito and Pirital production units, also in Monagas state. A separate contract focuses on buying equipment to reduce gas flaring — the burning off of unwanted gas at well sites. Venezuela's Hydrocarbons Minister said "the first service and purchase orders have been signed," describing near-term work as "surface barrels" tied to those Monagas deposits.
New Hydrocarbons Law Opens Doors to Foreign Investment
The deals come after Venezuela overhauled its Hydrocarbons Law. The reform is designed to let private and foreign companies invest in the country's energy sector on new terms. Rodríguez described the changes as enabling "flexible business agreements" so Venezuela can boost production "for the people of Venezuela," according to LSE.
She framed the agreements as "complementarity" and a "win-win" arrangement. The law creates new negotiation tools that the government says will attract more partners like Shell.
Shell's Return Signals Renewed Foreign Interest in Venezuela
Shell's participation marks a renewed push by foreign energy firms into Venezuela. Several major companies pulled back from the country in recent years due to US sanctions and political risk. Shell's new license is one of the clearest signs that foreign firms are returning, according to MarketScreener.
Production at Loran is not expected until the latter part of this decade. But the 2027 start target gives Shell and Venezuela a concrete near-term milestone. If met, it would mark the first time gas from the Loran field reaches export markets after more than 20 years of delays.
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