Qatar's UCC in Talks to Enter New Venezuelan Oil and Gas Blocks

en.Wedoany.com Reported - On September 29, Erik Keskula, head of upstream operations at Qatar's UCC Oil and Gas Holding, said at the Venezuela International Oil and Gas Summit held in Caracas that the company is in talks to enter new oil and gas blocks in Venezuela and is screening investment opportunities across multiple segments of the local oil and gas industry. UCC has not yet disclosed the specific blocks under negotiation, potential partners, investment scale, or transaction structure.

UCC has already secured a clear upstream natural gas interest in Venezuela. In August of this year, Venezuela granted a long-term development license for Phase 2 of the Loran offshore gas field, with UCC, BP, and the UAE's XRG each holding a one-third participating interest, with BP serving as operator. Loran Phase 2 is located in the Plataforma Deltana area northeast of the Orinoco River Delta, with current technically estimated recoverable natural gas resources of approximately 4 trillion cubic feet.

According to the license structure disclosed by XRG, its interest in Loran Phase 2 comes from a transfer by PDVSA Gas and remains subject to final license documents, development arrangements, government and regulatory approvals, as well as relevant sanctions and compliance requirements. The project can leverage existing regional infrastructure to connect to international markets. Shell simultaneously obtained a parallel development license for Phase 1 of the Loran gas field, with the two phases planned to proceed separately.

The Loran gas field's total natural gas reserves are estimated at approximately 7.3 trillion cubic feet, and it is adjacent to the Manatee gas field in Trinidad and Tobago waters. Loran and Manatee together hold approximately 10 trillion cubic feet of recoverable natural gas resources; Shell is currently advancing the Manatee development, with related natural gas production planned to commence in 2027. Meanwhile, BP has also signed a memorandum of understanding with the Venezuelan side to study potential development opportunities in the Carupano East block in the Mariscal Sucre offshore area.

UCC's talks come during a period of adjustment to Venezuela's oil and gas investment framework. The industry summit held on September 29 specifically discussed project structures under the new Hydrocarbons Law, including joint ventures, Production Participation Contracts, and investment agreements, with a focus on project financing, contractual arrangements, and regulatory risks. Daniel Fernandez, head of UCC's Venezuela operations, participated in the relevant panel discussions.

UCC's upstream head said during the summit that the company is interested in "multiple segments" of the local oil and gas industry, but publicly available information at this stage does not yet indicate that its new round of negotiations has entered the stage of license awards, formal contracts, or development plans. Whether the company can secure new block interests next will depend on specific asset selection, contract structure, and licensing arrangements on the Venezuelan side.