Key facts
- BP will partner with two oil firms closely linked to the Trump administration to develop the Loran gasfield in Venezuela.
- This represents one of the first major foreign investments in Venezuela's energy sector since the US ousted Nicolás Maduro.
- BP's partners include a Qatari company associated with the Al-Khayyat brothers and the overseas investment arm of UAE's national oil company.
- Venezuela is believed to possess the largest oil reserves globally, though its industry has declined significantly due to neglect and underinvestment.
- Oil output in Venezuela has risen to 1.2 million barrels a day since the Trump administration's intervention.
BP is set to develop a significant offshore gasfield in Venezuela, marking a substantial foreign investment in the country's energy sector. The move comes after Donald Trump urged oil companies to aid in rebuilding Venezuela's fossil fuel industry. BP will partner with two oil firms that have close ties to the Trump administration for the second phase of the Loran gasfield development.
One of BP's partners is a Qatari company owned by the Al-Khayyat brothers, who are reportedly working with Ivanka Trump and Jared Kushner on a resort project in Albania. BP will also collaborate with the overseas investment arm of the UAE's national oil company, led by Sultan Al Jaber, who previously pledged significant investment growth in the US energy sector.
This development positions BP as one of the first major international oil companies to re-enter Venezuela since the US removed Nicolás Maduro. Rival Shell has already secured a license for the first phase of the Loran field, and Caracas is in discussions with Italian oil company Eni. BP's CEO, Meg O’Neill, described the license as a crucial step forward, highlighting progress made with the Venezuelan government.
Venezuela, which possesses the world's largest oil reserves, has seen its production capacity severely diminished over decades due to neglect and corruption. However, since the Trump administration's intervention, oil output has reportedly increased to 1.2 million barrels per day, with exports to US refineries reaching their highest point since 2019.