Abu Dhabi Backed XRG Enters Venezuela With Stake in Offshore Loran Gas Licence

Abu Dhabi-backed XRG, the low carbon energy and chemicals investment arm of Abu Dhabi National Oil Company (ADNOC), has secured a stake in Venezuela’s offshore Loran gas licence as part of a consortium with BP and UCC Oil and Gas Holding, a unit of Qatar’s UCC Holding. Announced in mid‑August 2026, XRG will hold an equal working interest alongside BP and UCC, with BP designated to operate the Loran Phase 2 development. Phase 2 of the field is estimated to contain around 4 trillion cubic feet of recoverable gas.

"XRG was established in November 2024 with a stated goal of more than doubling its asset value over the coming decade by targeting demand for low carbon energy and chemicals," the company said, underlining gas and liquefied natural gas across Latin America as "a declared plank of that strategy, and Loran is the first concrete step."

Deal specifics and consortium dynamics

The Loran licence lies within the broader Loran‑Manatee offshore gas accumulation that straddles the maritime boundary between Venezuela and Trinidad and Tobago. That cross‑border geography has historically complicated development because a reservoir spanning two jurisdictions requires agreement between both governments before production can proceed.

Under the terms announced, XRG, BP and UCC will each hold equal working interests in the concession while BP will act as operator for the Phase 2 development. The arrangement is notable for bringing together sovereign‑linked investors from two Gulf states — Abu Dhabi’s XRG and Qatar’s UCC — alongside a European supermajor, reflecting a pragmatic approach to sharing technical, operational and political risk on large offshore projects.

Why Gulf capital is moving overseas

Sovereign‑linked Gulf investment vehicles have been increasingly active outside their home markets, taking positions in overseas energy assets, technology infrastructure and venture capital. The consortium’s composition — Abu Dhabi and Qatari funded entities sitting alongside BP — fits a broader pattern of partnership rather than competition on high‑complexity, capital‑intensive projects.

• Strategic aim: XRG’s mandate emphasizes low carbon energy and chemicals, with Latin American gas and LNG explicitly targeted.
• Field scale: Loran Phase 2 holds an estimated 4 trillion cubic feet of recoverable gas, positioning it as a material development should cross‑border issues be resolved and sanctions or political obstacles permit progress.
• Timeline and risks: Large offshore developments are slow; Phase 2 will take years to reach production, and cross‑border projects add political risk on top of technical risk.

Outlook

The Loran deal marks XRG’s entry into Latin America and signals that Gulf energy capital is expanding beyond the region’s borders. While the award indicates where capital is being deployed, it is not a guarantee of near‑term output: the project must navigate cross‑jurisdictional agreements and the lengthy technical programme typical of offshore gas developments.

For the Gulf economies, reinvestment of hydrocarbon returns into overseas assets helps sustain diversification budgets at the centre of national economic programmes. Practically, an overseas gas development managed in part from Abu Dhabi could create engineering, project management, compliance, legal, finance and data roles in the Gulf, extending the regional ecosystem of skills tied to energy projects even as production timelines remain long.