Venezuela inks gas deals with BP, two other foreign companies

CARACAS - Venezuela granted licenses on Aug 13 for three foreign companies to look for and produce natural gas as the government opens up the energy sector under intense US pressure.

After the US capture of Nicolas Maduro in January, interim leader Delcy Rodriguez yielded to President Donald Trump’s administration and reformed Venezuela’s energy law so the US and other foreign companies can benefit from its vast oil reserves and other natural resources.

Since then, Venezuela has signed several agreements with foreign companies to look for, produce and export oil and gas.

But the devastating June 24 earthquakes, which killed more than 6,300 people, prompted a halt in the granting of these licenses.

The process resumed Thursday as permits went to British Petroleum, XRG of the United Arab Emirates and UCC, a company based in Qatar.

The three companies will work to develop a natural gas field called Loran.

Venezuela has the world’s largest proven reserves of oil and also boasts large deposits of natural gas.

In June the government granted Shell a license to work in a different area of the Loran field.

“I have a special interest in gas to promote national development,” Rodriguez said Thursday as she announced the new licenses.

In exchange for Venezuela opening up its energy sector, the United States has eased sanctions that had been in place when Maduro was in power, allowing foreign companies to work in Venezuela.

Maduro was a leftist criticized as ruling like an autocrat and was accused of stealing elections. AFP