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BP to develop offshore gasfield in Venezuela with firms linked to Trump administration
BP has been granted a licence to develop the second phase of Venezuela’s offshore Loran gasfield, partnering with companies linked to the Trump administration. The move is among the first major foreign investments in Venezuela since the US ousted Nicolás Maduro in January, and supports President Trump’s call for at least $100bn of investment to revive the country’s fossil-fuel industry.
BP will work with a Qatari firm owned by the Al-Khayyat brothers and the overseas investment arm of the UAE’s national oil company. Shell already holds a licence for Loran’s first phase, while Eni is discussing oil projects with Caracas; Venezuela’s oil production has risen from about 1m to 1.2m barrels a day since US control, despite long-term decline from more than 3.5m barrels a day in the late 1990s.
In short
- BP joins Venezuela’s renewed offshore gas development.
- The project involves firms linked to Trump allies.
- Venezuelan oil output has risen to 1.2m barrels daily.
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The case for
Supporters argue that developing the offshore gasfield could help restore Venezuela’s economy, create skilled employment and provide revenue for rebuilding public services after political upheaval. They may also contend that foreign expertise and capital are necessary to revive neglected infrastructure, while gas can offer a relatively lower-carbon fuel than coal or oil during a wider energy transition. Partnership with international companies, on this view, could bring stronger technical, safety and transparency standards.
The case against
Critics argue that major foreign fossil-fuel investment risks legitimising a political settlement shaped by external pressure rather than Venezuelans’ freely expressed consent. They may question whether revenues will genuinely benefit the public, particularly given Venezuela’s history of corruption and resource mismanagement, and warn that expanding gas production deepens dependence on fossil fuels at a time when investment should shift towards cleaner energy. Close links between partner firms and the Trump administration may also raise concerns about conflicts of interest and unequal control over national resources.
Explained simply
Venezuela has large oil and gas reserves, but years of declining production and limited investment have left its energy industry in need of new infrastructure and funding. Offshore gasfields such as Loran lie beneath the sea and require companies with specialist equipment and substantial investment to develop.
BP is a British energy company, and the Loran project involves Qatari and Emirati partners. Shell holds a licence for an earlier phase of the field, while Italy’s Eni is also discussing projects with Venezuela. The country’s government controls access to its energy resources, making licences important to foreign companies seeking to operate there.
The project is part of wider efforts to attract investment and increase energy production. Venezuela’s oil output has fallen sharply from levels reached in the late 1990s, and renewed development could affect its economy and role in energy markets.
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