BP Secures Loran Phase 2 Offshore Exploration and Development License in Venezuela

The U.S. is strengthening ties with Trinidad and Tobago, focusing on energy security and investment. BP is acquiring a 70% stake in the Calypso gas project, estimated to contain 3.5 trillion cubic feet of natural gas. Additionally, a U.S. company is exploring refurbishing a steel plant in Trinidad, which could supply strategic metals to the U.S. These developments aim to secure supply chains and reduce dependence on China.

bp, XRG, and UCC Oil and Gas Holding were awarded a Venezuelan gas licence for the Lorán field, covering 4 trillion cubic feet. The deal is legal under US General License 50A, which permits oil and gas transactions in Venezuela. Analysts suggest the gas may supply Trinidad's LNG plants, but bp has not confirmed this. Venezuela's economy is projected to grow 6.5% in 2026, though challenges remain.

Equinor ASA is advancing the Bay du Nord oil project off Newfoundland's coast, submitting a development plan and acquiring BP's 37% stake. The $14B project, with production starting in 2031, could boost Newfoundland's economy, which faces a growing deficit. Equinor aims for a final investment decision by early 2027, with government support for environmental and economic benefits.

BP, Shell, and Gulf partners have secured agreements to develop Venezuelan offshore gas fields, including the Loran and Manatee fields. BP, UAE's XRG, and Qatar's UCC Holding will explore the Loran field, while Shell operates the Manatee field. The projects, subject to approvals and sanctions, aim to produce up to 10 trillion cubic feet of gas. Venezuela also signed oil contracts with Hunt Oil, Crossover, and SLB, with estimated investments around $2 billion.

Emerson Electric (EMR) secured a multi-million-dollar contract from BP (BP) for a Caspian Sea project. EMR's Q3 2026 sales grew 7% YoY to $4.87B, with adjusted EBITA margin at 28.5%. BP's Q2 2026 revenue benefited from strong commodity prices, with operating cash flow at $10.9B. Bernstein raised EMR's price target to $186. Both companies are subject to different operational risks and growth prospects.

Brent crude rose above $91 and WTI above $85 due to tensions in the Strait of Hormuz, including an attack on a vessel. Eight major oil firms, including Saudi Aramco, BP, and Chevron, nearly doubled Q2 profits to $87bn, benefiting from higher oil prices caused by the conflict. Saudi Aramco reported a 34% increase in net income to $33bn, while Chevron saw its highest quarterly profit in six years at $12.2bn.