Abu Dhabi's XRG enters Venezuela with offshore natural gas licence award

Abu Dhabi’s energy investment arm, XRG, has secured a significant offshore natural gas licence in Venezuela, marking its entry into the South American nation's energy sector. The company, operating under Adnoc's international division, has been granted a licence for the Loran field, which boasts over 4 trillion cubic feet (tcf) of proven gas resources.

This award positions XRG as an equal interest partner alongside bp and Qatar’s UCC in the Loran phase 2 project. Mohamed Al Aryani, president of XRG's international gas division, highlighted Venezuela's potential to play a greater role in meeting regional and international energy demand, emphasizing XRG's strategy to invest in advantaged resources with established infrastructure and clear market routes.

The Loran project is part of the larger Loran-Manatee offshore gas deposit, straddling the maritime boundary between Venezuela and Trinidad and Tobago. XRG's entry into Venezuela complements its growing presence in the Atlantic Basin and aligns with its broader strategy of establishing a gas and LNG platform across Latin America.

This move follows XRG's recent strategic investments, including a 32% stake in Argentina's liquefied natural gas project and an increased share in the US's Rio Grande LNG project, reflecting the company's ambition to double its asset value over the next decade.