Lifting The Veil? US Reportedly Authorizes BP & Trinidad's NGC To Tap Gas Reserves With Venezuela

Zinger Key Points
  • BP and NGC received a US license to develop the Cocuina-Manakin gas fields with Venezuela over the next two years.
  • The project involves tapping into a 1 trillion cubic feet offshore gas reservoir spanning from Venezuela to Trinidad.

BP p.l.c. BP and Trinidad and Tobago’s state energy firm NGC reportedly received a two-year license from the U.S. Treasury Department to negotiate and develop the Cocuina-Manakin gas fields with Venezuela.

Minister Stuart Young said in a briefing that BP and NGC are now allowed to plan a project involving an offshore reservoir with about 1 trillion cubic feet (tcf) of gas reserves that extends from Venezuela to Trinidad, reported Reuters.

As per the report, the authorization is the second issued by the U.S. for energy projects between the two countries, following a license in 2023 to Shell plc SHEL and NGC for the Dragon gas field in Venezuela, which will export gas to Trinidad under the license through October 2025.

Last month, Washington did not renew a broad license allowing Venezuela to freely export its oil and receive investment. However, it has since issued individual authorizations to companies trying to do business in the sanctioned South American country.

Earlier this month, BP’s spokesperson said that the company had suspended negotiations for Cocuina-Manakin, which on Venezuela’s side belongs to the Plataforma Deltana project, until receiving U.S. authorization.

Notably, Venezuela plans to start gas exports to secure another source of revenue for the oil-producing country, which has remained under sanctions since 2019.

The report further added the officials said that Venezuela and Trinidad expect to jointly develop a third project involving gas reserves in both countries’ waters, the Loran-Manatee fields.

Yesterday, BP, Shell, and EOG Resources, Inc. EOG reportedly offered six bids to Trinidad and Tobago.

Investors can gain exposure to the stock via Direxion Hydrogen ETF (ARCA: HJEN) and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF (ARCA: EIPX).

Price Action: BP shares are down 0.08% at $37.09 premarket at the last check Thursday.

Market News and Data brought to you by Benzinga APIs
Posted In: EquitiesLarge CapMediaBriefsStories That Matter
Benzinga simplifies the market for smarter investing

Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.

Join Now: Free!