SEATTLE (Oil Monster): The Venezuelan government has signed five contracts with Shell that will give the European supermajor rights to operate the giant Loran natural gas field.
The agreements formalise Shell’s participation in Loran, a cross-border reservoir shared with Trinidad & Tobago estimated to hold 7 trillion cubic feet of natural gas, and also cover oilfield expansion and efforts to reduce gas flaring.
“For the first time, the Hydrocarbons Law, which was recently reformulated and amended, is allowing us these forms of negotiations and flexible business agreements where we will also boost production, and where we can make better use of resources for the people of Venezuela,” said Venezuela’s interim president Delcy Rodriguez.
She emphasised the strategic step seeks to enhance the country’s energy capabilities through direct collaboration with key international players, thus ensuring concrete progress in the infrastructure needed for hydrocarbon extraction in the Loran field.
Loran is expected to play a central role in Venezuela’s offshore gas ambitions, as it will be developed along with the Dragon project, also involving Shell, in Trinidad & Tobago, estimated to hold 4.2 Tcf.
In addition to Loran, Shell also agreed to a technical alliance to support procurement and output expansion at fields in Monagas North, and to a separate pact to buy equipment and parts to reduce gas flaring.
The agreements move Shell to the top of state-owned energy company PDVSA’s list of partners for key oil projects.
Courtesy: www.upstreamonline.com
