Venezuela yesterday resumed the process of awarding licenses for natural gas exploration and production, with acting Venezuelan President Delcy Rodríguez announcing permits for three foreign companies — British Petroleum (BP), UAE-based XRG and Qatar-based UCC — to develop the Loran field.
Drive to open up the energy sector
The licenses are part of the Venezuelan government's drive to open up the energy sector to foreign companies and capitalize on the country's oil reserves and other natural resources.
I have a particular interest in gas to promote national development
After the United States arrested former President Nicolás Maduro last January, Rodríguez amended the energy law under pressure from the administration of Donald Trump, enabling U.S. and other foreign companies to benefit from the country's resources. Venezuela has since signed several agreements with foreign companies to explore for, produce and export oil and gas.
Licensing resumes after the June 24 earthquakes
The licensing process had been suspended after two devastating earthquakes struck on June 24, killing more than 6300 people, before resuming yesterday with the award of new permits to the three companies.
Oil and gas reserves
Venezuela has the world's largest proven oil reserves, as well as large natural gas deposits. In June last year, the government granted Shell a license to operate in another area of the Loran field.
