ADNOC's XRG Secures Major Stake in Venezuela's Loran Offshore Gas Field

ADNOC's international energy investment company, XRG, has officially entered Venezuela by securing an interest in the offshore Loran gas licence. This strategic move grants the Abu Dhabi-based firm exposure to one of Latin America's substantial undeveloped gas resources and significantly expands its international gas portfolio.

Strategic Acquisition

XRG announced that it was awarded an interest in the Loran licence by Venezuela, following a transfer of interest from the state-owned PDVSA Gas. Pending regulatory approvals, XRG will hold an equal interest alongside existing partners bp and UCC. The licence offers more than 4 trillion cubic feet (Tcf) of proven gas resources.

This investment marks XRG's direct entry into Venezuela, adding a key geography to its diverse gas holdings, which already span the US, Argentina, Egypt, Azerbaijan, Turkmenistan, and Mozambique.

Access to International Markets

The Loran licence's importance extends beyond its resource size due to its proximity to established gas and liquefied natural gas (LNG) infrastructure in Trinidad and Tobago. This advantageous location potentially offers a viable pathway for Venezuelan gas to access international markets without the necessity of constructing entirely new export systems.

Loran constitutes the Venezuelan portion of the larger Loran-Manatee offshore gas accumulation, which straddles the maritime boundary between Venezuela and Trinidad and Tobago. Historically, independent estimates place the combined resource at around 10 Tcf, with approximately 7.3 Tcf attributed to Venezuela's Loran and 2.7 Tcf to Trinidad and Tobago's Manatee.

Mohamed Al Aryani, President, International Gas at XRG, commented on the development:

"Our entry through Loran reflects XRG’s strategy to invest with partners in advantaged resources with access to established infrastructure and clear routes to market."

This transaction underscores XRG's strategy of building a robust international gas business by acquiring positions across multiple major gas-producing and LNG markets, rather than concentrating investments in a single region. This geographical diversification is crucial for mitigating risks and using existing infrastructure, as the development of new LNG export facilities can involve billions of dollars and years of construction.