Chevron and Shell are expected to sign agreements with Venezuela’s oil ministry and state-owned Petróleos de Venezuela, S.A. (PDVSA) to advance development of the Loran gas field and expand oil operations in the Orinoco Belt.
Reuters reported on April 13 that the deals are expected to be finalized in the presence of acting President Delcy Rodríguez, following reforms to Venezuela’s oil laws and a broader push to attract foreign investment into the energy sector.
Chevron is expected to return the Loran gas field to the state while strengthening its position in heavy oil. “The deals include the increase of Chevron’s stake at one of its joint ventures with PDVSA in the Orinoco, Petroindependencia, to 49% from a previous 35.8%,” Reuters reported.
The agreement also sees the company relinquishing offshore gas assets, including Loran, in exchange for new acreage. “The company also agreed to relinquish two gas blocks that include the coveted Loran offshore field… while receiving a new oil area, Ayacucho 8, as part of its existing Petropiar project,” the report stated.
Chevron had previously explored the Loran field, confirming reserves of more than 7 trillion cubic feet, but did not move it into development.
Shell is set to assume control of the Loran field, taking over its operations and development as part of a separate agreement. The field’s cross-border nature adds complexity, extending into Trinidad and Tobago’s Manatee field, where Shell already operates.
According to Reuters, the agreements position Chevron to expand output from the Orinoco Belt. “Chevron executives said in January the firm could increase output in Venezuela by about 50% in the next two years… the company’s joint ventures with PDVSA are producing 260,000 barrels per day of crude,” the report noted.
The developments come as Trinidad and Tobago faces gas supply constraints affecting its LNG and petrochemical sectors, with projects such as Loran-Manatee expected to support future supply.
