Shell has signed five contracts with Venezuela, securing rights to operate the Loran natural gas field, a cross-border reservoir shared with Trinidad & Tobago.
Loran is estimated to hold 7 trillion cubic feet of natural gas. The agreements also include oilfield expansion work and measures to reduce gas flaring.
Venezuela’s interim president Delcy Rodriguez said the amended Hydrocarbons Law allows more flexible business arrangements with international partners. She said the agreements are intended to lift production and improve the use of Venezuela’s energy resources.
The Loran field is expected to support Venezuela’s offshore gas plans. Its development will be linked with the Dragon project offshore Trinidad & Tobago, which also involves Shell and is estimated to hold 4.2 Tcf.
In addition to Loran, Shell agreed to a technical alliance covering procurement support and production growth at Monagas North fields. A separate agreement covers equipment and parts purchases to reduce gas flaring.
The contracts place Shell among PDVSA’s key partners for major oil and gas projects.
BP is also expected to take part in Loran and the nearby Cocuina-Manakin offshore gas project under separate agreements with the Venezuelan government.
