The Daily Journal — The Venezuelan government signed an agreement with energy giant Shell plc to increase light crude oil production in northern Monagas State, providing a key input for processing heavy crude from the Orinoco Oil Belt.
Acting President Delcy Rodríguez led the signing ceremony with Shell representatives, formally launching Phase I of the development and exploitation of the Loran Field.
During the meeting, the parties signed five strategic instruments designed to expand Venezuela’s energy capacity for both domestic consumption and export markets.
During this initial operational phase, Venezuela seeks to strengthen its position as a natural gas exporter by leveraging its vast hydrocarbon reserves to address global energy challenges.
The Loran Field is a non-associated natural gas asset that contains seven reservoirs, six of which extend across the maritime border with Trinidad and Tobago.
The remaining four legal instruments stem from the technical and financial partnership established in March. These agreements include service and procurement orders for projects in northern Monagas State.
The initiatives focus on increasing light crude production, which serves as the diluent for producing the Merey 16 blend from crude extracted in the Orinoco Oil Belt.
The agreements also provide the feedstock required by the Puerto La Cruz Refinery to manufacture fuels.
In addition, the purchase orders resulting from the agreements with Shell include spare parts for the gas compression network, helping reduce gas flaring.
By recovering and utilizing this resource, Venezuela can bring additional gas volumes into the domestic market, supplying the electricity, industrial, petrochemical, and residential sectors, while also supporting export opportunities.
