BP announced on April 29, 2026 that it had signed a memorandum of understanding with the Venezuelan government to explore offshore gas in the Loran area of the Caribbean Sea. The agreement was signed by a BP executive and acting President Delcy Rodriguez and marks the company’s first formal partnership with Venezuela since the 2020s.
The Loran‑Manatee field, which straddles the Venezuela‑Trinidad and Tobago border, is estimated to hold about 10.25 trillion cubic feet of proven natural‑gas reserves. BP’s entry into the area is intended to diversify its upstream portfolio and complement its existing assets in the Gulf of Mexico and the North Sea, where it is investing heavily in deep‑water projects.
Historically, BP had maintained minority shares in Venezuelan projects after the 2007 nationalization, but had not entered into a new formal agreement since the early 2020s. The current MoU signals a broader trend of international oil companies re‑engaging with Venezuela as U.S. sanctions have eased in certain sectors and the country seeks foreign investment to revive its energy sector.
The U.S. sanctions environment remains a key consideration. The U.S. government has granted Trinidad and Tobago a license to develop the Cocuina‑Manakin field despite sanctions on Venezuela, and BP already operates the Trinidadian side of that cross‑border project. The new agreement demonstrates BP’s ability to navigate the sanction framework while pursuing new exploration opportunities.
Strategically, the deal aligns with BP’s renewed focus on high‑return upstream projects after a period of emphasis on green energy. By tapping into the Loran field, BP positions itself to capture significant gas volumes that could support its long‑term growth and provide a counterbalance to geopolitical tensions in other regions.
"The return of BP is a clear sign of the future we want to chart for Venezuela and for international energy relations—relationships based on respect, cooperation grounded in a win‑win approach, and shared benefits that contribute to the development of the Venezuelan people," said acting President Delcy Rodriguez. "BP was pleased to be partners with Venezuela on the exploration of the Loran area, as well as on other projects, including the commercialisation of gas," added BP’s executive vice president for gas and low‑carbon energy, William Lin.
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