BP Eyes Opportunities with Venezuela, Says Trinidad Chief

• BP and Shell previously received licenses from the U.S. and Venezuela to develop offshore gas projects at the maritime border where vast reserves have been found
• The Cocuina-Manakin project has gas deposits extending into both countries' waters and has completed its exploration phase, requiring joint development to begin output
• BP's Trinidad head cited 'underutilized assets like Atlantic LNG and Point Lisas' as rationale for pursuing Venezuelan cross-border opportunities despite investment caution

Summary

Key Development:

BP remains committed to pursuing cross-border energy opportunities with Venezuela despite Caracas suspending all bilateral energy agreements with Trinidad and Tobago in 2025. BP's Trinidad and Tobago chief David Campbell confirmed the company's continued interest during an energy conference in Port of Spain on January 26.

Strategic Focus:

The primary target is the Cocuina-Manakin natural gas project, a joint venture between BP and Venezuela's state-run PDVSA. The project involves gas deposits straddling both countries' maritime borders, requiring collaborative development. The exploration phase was completed years ago, but production has yet to begin.

Both BP and Shell previously secured licenses from the U.S. and Venezuelan governments to develop offshore natural gas projects in the region, where significant reserves have been discovered.

Business Rationale:

Campbell emphasized the "industrial logic" of developing Venezuelan resources adjacent to BP's underutilized Trinidad assets, specifically mentioning Atlantic LNG and Point Lisas facilities. These cross-border developments would maximize existing infrastructure capacity.

Investment Scale:

BP allocated approximately 10% of its global capital expenditure to Trinidad energy projects in the previous year, demonstrating substantial commitment to the region.

Market Implications:

The announcement signals BP's long-term confidence in Venezuela despite ongoing political and economic uncertainties. Success would unlock vast offshore gas reserves while optimizing BP's existing Caribbean infrastructure. However, execution depends on resolving diplomatic tensions between Venezuela and Trinidad and navigating complex U.S. sanctions frameworks. The project could significantly impact regional LNG supply if realized.