en.Wedoany.com Reported - The Venezuelan government announced that the country has signed five agreements with British oil giant Shell to advance oil and gas projects, including Shell's participation in the highly anticipated offshore Loran gas field, which is estimated to hold 7 trillion cubic feet of reserves. Shell had signed related agreements with Venezuela earlier this year for these and other projects. Following the arrest of President Nicolas Maduro by the United States in January, Shell is one of the few major foreign companies to seize energy investment opportunities in Venezuela.
The two sides also agreed to establish a technical alliance to expand oil fields in northern Monagas, while signing an agreement to purchase equipment and parts aimed at reducing gas flaring. Under a consensus reached on the technical alliance, the expansion of northern Monagas oil fields has been advanced, and another agreement for purchasing equipment and parts specifically targets reducing gas flaring.
The Loran gas field, along with another 4.2 trillion cubic feet Dragon project in Venezuela involving Shell, is expected to help the South American country, which has abundant offshore natural gas reserves awaiting development, launch offshore gas exports. The produced gas will be supplied to Trinidad for processing into liquefied natural gas.
Although Shell previously withdrew from Venezuelan projects and closed its offices, it has now risen to the top of the list of key partners for Petróleos de Venezuela, S.A. (PDVSA).
Interim President Delcy Rod of the United States stated at the signing ceremony broadcast by state television that signing this permit was "a historic step."
The government said in a statement that Shell will be able to increase the amount of diluent available to refineries to produce the country's flagship export product, Merey crude. Under an agreement signed with the Venezuelan government in April, BP will also participate in the Loran gas field and the nearby Cocuina Manakin offshore project.
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