Venezuela’s latest agreement with bp to develop offshore gas resources is welcomed by the African Energy Chamber (AEC) as a clear signal that the country’s energy sector is moving back into growth mode – this time with natural gas and LNG at its center.
Announced on April 29, the memorandum of understanding covers development of the Cocuina-Manakin field, which straddles the maritime border with Trinidad and Tobago, alongside new exploration in the nearby Loran area. The agreement formalizes long-delayed progress on a cross-border resource that has been under discussion for decades but repeatedly stalled by sanctions and political uncertainty.
What makes the deal significant is not just the return of an international major, but the scale of the resources involved. The Manakin-Cocuina project alone is estimated to hold around one trillion cubic feet of gas, while the broader Loran-Manatee system is believed to contain as much as 10 trillion cubic feet, with the majority located on Venezuela’s side of the border. These discoveries represent a material new source of supply in a market increasingly defined by LNG demand growth.
For Venezuela, this signals a strategic shift. The country has long been defined by its vast oil reserves, but years of underinvestment and operational decline have exposed the limits of a purely oil-led model. Gas, particularly offshore gas, offers a different pathway – one that is capital-light relative to oil and better aligned with current global energy demand.
“bp’s return is an important step in restoring confidence in Venezuela’s energy sector,” said NJ Ayuk, Executive Chairman of the AEC. “Gas development, especially in partnership with established LNG infrastructure, gives Venezuela a faster and more commercially viable route back into global markets.”
Unlike many emerging gas producers, Venezuela does not need to build an LNG export industry from scratch. Its offshore resources are located just miles from Trinidad and Tobago, one of the Caribbean’s most established LNG hubs. Existing processing facilities and pipelines on the Trinidadian side provide a ready-made export solution, allowing Venezuelan gas to be monetized more quickly and at lower cost.
This model is already shaping development plans. bp has previously indicated that gas from the Cocuina-Manakin field could be transported to Trinidad for liquefaction and export, effectively linking Venezuela into global LNG supply chains without the need for major new infrastructure.
At the same time, momentum is building across the broader offshore gas corridor. The Loran-Manatee project, in which Shell is also involved, is targeting production as early as 2027, with pipeline capacity being expanded to handle up to one billion cubic feet per day. Nearby, the Dragon field – another cross-border development – is expected to produce around 350 million cubic feet per day once operational. Together, these projects point to the emergence of a new regional gas system linking Venezuela and Trinidad into a shared export platform.
This has implications well beyond the Caribbean. Global LNG demand continues to rise, particularly in Europe and Asia, where buyers are seeking diversified supply sources. In that context, new Atlantic Basin gas – particularly projects that can be developed relatively quickly – carries increasing strategic value. Venezuela’s re-entry also reflects a broader trend, with international energy companies such as Eni and Repsol steadily re-engaging as conditions improve and access to the country’s resources gradually reopens.
For the AEC, the deal underscores a wider lesson: gas is becoming central to energy transition and economic recovery strategies across emerging markets. “There are clear parallels with Africa,” Ayuk added. “Monetizing gas resources through regional cooperation and existing infrastructure is one of the most effective ways to accelerate development.”
If projects like Cocuina-Manakin and Loran move forward as planned, Venezuela could re-emerge not just as an oil producer, but as a meaningful player in the global LNG landscape.
