Venezuela Secures 20-Year Natural Gas Agreement with BP and NGC

Venezuela’s Oil Minister, Pedro Tellechea, has revealed that the country has entered into a landmark 20-year agreement with BP and The National Gas Company of Trinidad and Tobago Limited. This strategic partnership will focus on both the production and exploration of natural gas, reflecting a substantial commitment to developing Venezuela's natural gas resources. The deal is poised to enhance Venezuela’s energy sector by leveraging the expertise and resources of BP and the Trinidadian company. It underscores Venezuela’s efforts to attract significant international investment and technological expertise to bolster its energy infrastructure and expand its natural gas output over the long term.

The Minister highlighted that the agreement encompasses the production of natural gas from the Cocuina gas field, situated offshore from Venezuela. Under this arrangement, 25% of the produced gas will be directed to supply Trinidad's petrochemical industry, supporting its key manufacturing sector. The remaining gas will be allocated to Trinidad and Tobago's LNG industry, enhancing the country's capabilities in liquefied natural gas production. The field is projected to produce approximately 400 million cubic feet of natural gas per day.

In May 2024, the United States Office of Foreign Assets Control (OFAC) issued a specific license permitting the National Gas Company of Trinidad and Tobago Limited, BP, and the Government of Trinidad and Tobago to negotiate the development of the cross-border Manakin-Cocuina gas field with Venezuelan authorities. This development is significant due to the substantial gas reserves located within Venezuela's Plataforma Deltana region and in fields extending across the maritime boundary with Trinidad and Tobago. The license enables collaborative efforts to harness these extensive gas resources, fostering regional energy cooperation and advancing the exploration and production of valuable natural gas reserves.

Transporting natural gas via pipeline from these fields to Trinidad for processing through Trinidad and Tobago’s advanced LNG and petrochemical facilities presents a significant opportunity. This development benefits Trinidad and Tobago, Venezuela, and global markets dependent on imported gas and petrochemicals. By leveraging Trinidad and Tobago's state-of-the-art processing capabilities, the agreement facilitates a reliable supply of essential energy and chemical products, supporting economic growth and energy security for numerous countries worldwide.

The Energy Chamber of Trinidad & Tobago enthusiastically endorses the recent licensing agreement between BP and NGC for the development of the Cocuina gas field in Venezuela's Platiforma Deltana, adjacent to Trinidad's maritime boundary. This strategic move, coupled with bp's existing Manakin field license on the Trinidad side, positions the nation to significantly bolster its natural gas reserves. The Chamber commends the collaborative efforts of BP, NGC, and the Government in finalizing this agreement. The development of this cross-border field is anticipated to inject substantial gas volumes into Trinidad & Tobago's LNG and petrochemical sectors, thereby extending industry lifespan, stimulating economic growth, and generating employment opportunities for the nation.