Venezuela Signs Natural Gas Development Deal with Shell, Eyes Energy Sector Revitalization

Venezuela has entered into new agreements with the multinational corporation Shell to develop and exploit the Loran natural gas field, located in the continental shelf waters of Delta Amacuro state. The agreements were signed by acting president Delcy Rodríguez on behalf of Venezuela. A total of five instruments of strategic importance were signed, designed to enhance Venezuela's energy capabilities for both internal consumption and export markets, according to official press and propaganda outlets.

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In the meeting, a total of five instruments of strategic relevance were signed, designed to increase Venezuela's energy capabilities for domestic consumption and the export market.

The Loran field contains seven identified reservoirs, six of which are transboundary with Trinidad and Tobago. While the specific details of the agreements remain confidential, they are part of a technical-financial alliance established in March. These agreements include service and purchase orders for work to be carried out in northern Monagas state. Official information indicates that these accords aim to increase the production of light crude oil, a crucial diluent for formulating Merey 16 with crude extracted from the Orinoco Belt. Additionally, the agreements contemplate hydrocarbon supply for the Puerto La Cruz refinery operations, which has historically operated below capacity due to a lack of diluents and natural gas.

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These agreements aim to increase the production of light crude oil, a hydrocarbon used as a necessary diluent for the formulation of Merey 16 with the crude extracted from the Orinoco Oil Belt.

Minister of Hydrocarbons, Paula Henao, stated that this agreement presents an opportunity to develop the deepwater Loran field and strengthens cooperation through a technical-financial alliance. Henao explained that by recovering the compressor park system, a larger volume of gas can be incorporated into the national market, optimizing internal supply and benefiting other strategic sectors.

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Thanks to the recovery of the compressor park system, a greater volume of gas can be incorporated into the national market to optimize internal supply and utilize it in other strategic sectors.

This marks the second significant energy sector agreement signed by Rodríguez this week. On Wednesday, she met with Olivier Le Peuch, CEO of Schlumberger Limited, and they signed a memorandum of understanding to bolster the national oil and gas industry. The official narrative frames this as formalizing the technological return of Schlumberger, a company with 97 years of presence in Venezuela. Schlumberger has faced challenges recovering debts from its Venezuelan operations, which were later limited by U.S. sanctions against the Venezuelan government. Schlumberger (SLB) is expected to transfer advanced technology to optimize exploration, drilling, and reservoir performance for PDVSA. The company will also explore investment and development opportunities in the mining sector, according to the government.

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This agreement formalizes the technological return of the French company, which has a track record of 97 years of presence in the country.