Venezuela Signed Natural Gas Production and Exploration Deal with BP, Trinidad

SEATTLE (Oil Monster):Venezuela has reportedly signed a 20-year agreement on natural gas exploration and production with BP Plc and state-owned National Gas Company of Trinidad and Tobago (NGC). The move is expected to transform the country into a major fuel exporter.

ALSO READ: LUKOIL Drills First Well in Venezuela's Orinoco

According to Pedro Tellechea, Venezuela’s oil minister, the deal will allow for production from Cocuina gas field off the Venezuelan coast. Nearly one fourth of the produced oil will be supplied to Trinidad’s petrochemical sector, while the remaining 75% will be exported. The Cocuina gas field has an estimated production capacity of 400 million cubic feet per day, the Minister added.

For several years, foreign investments in Venezuela had dried up, especially due to sanctions imposed by the U.S. As a result, the country’s vast gas reserves have been mostly untapped. Of late, Spanish major Repsol SA had obtained license allowing it to continue operations in Venezuela. Chevron Corporation also had announced restart of drilling operations in the country. Most recently, leading Indian oil refiner Reliance Industries had secured approval to resume oil imports from Venezuela.

As per estimates, Venezuela’s Manakin and Cocuina fields contain approximately one trillion cubic feet of gas reserves.