BP Rebalances Regional Energy Strategy with Venezuelan Gas Stake Sale

2026-08-11 companies

Caracas, Monday, 10 August 2026.
BP has agreed to sell a 20% stake in Venezuela’s offshore Cocuina gas field to Trinidad’s National Gas Company, directing 70% of production to Latin America’s largest LNG facility.

Cross-Border Energy Agreement Details

BP (NYSE: BP) has formally agreed to divest a 20% stake in the Venezuelan portion of the cross-border Cocuina-Manakin natural gas field to Trinidad and Tobago’s state-owned National Gas Company (NGC) [1][2]. This strategic transaction was confirmed by market sources on Monday, 10 August 2026, with an official announcement expected from Trinidad and Tobago Prime Minister Kamla Persad-Bissessar later in the day [2][3]. The agreement marks a significant development less than four months after Venezuela granted BP the necessary license to develop the field, signaling accelerated cooperation between the two nations [2][5]. The Cocuina-Manakin field is a critical asset containing approximately 1 trillion cubic feet of natural gas reserves, straddling the maritime boundary shared by Venezuela and Trinidad and Tobago [3][4].

Cross-Border Energy Agreement Details

The Cocuina section of the field forms part of Venezuela’s undeveloped Deltana Platform gas project, while NGC already holds a 20% stake in the Manakin portion on the Trinidad side [3][5]. This existing footprint positions NGC to integrate the new Venezuelan supply directly into its downstream infrastructure, enhancing regional energy security [1][4]. Neither Venezuela’s oil ministry, BP, nor NGC immediately replied to requests for comment regarding the specific financial terms of the equity sale [3][5]. However, the move aligns with broader efforts by international energy firms to rebalance regional portfolios and establish joint cross-border natural gas initiatives across South America and the Caribbean [1][2].

Strategic Allocation of Natural Gas Resources

Under the terms of the agreement, BP and NGC have agreed to market 70% of the project’s gas to Atlantic LNG, which operates Latin America’s largest liquefied natural gas export facility [3][4]. The complex has faced operational challenges in recent years due to declining domestic natural gas supplies in Trinidad, which has constrained output and forced the closure of one of its four processing trains [3][5]. Ownership of Atlantic LNG is distributed among major industry players, with BP owning a 45% stake, Shell holding 45%, and NGC holding the remaining 10% [3][4]. This arrangement ensures a steady feedstock for the export facility, mitigating the impact of domestic supply shortages that have affected production volumes [3][5].

Strategic Allocation of Natural Gas Resources

The remaining 30% of the produced natural gas at Cocuina-Manakin will be dedicated to the local petrochemical industry, supporting domestic industrial growth [2][4]. This split prioritizes both export revenue generation and local economic development through value-added processing [3][4]. By securing supply for Atlantic LNG, the deal addresses critical feedstock shortages that have limited the facility’s capacity utilization in recent periods [3][5]. The integration of Venezuelan gas into Trinidad’s processing infrastructure represents a tangible step toward stabilizing regional energy output [1][5].

Timeline and Investment Decisions

Development at the Cocuina-Manakin field is progressing toward a final investment decision (FID), which sources expect to be taken by the end of 2026 [2][3]. This timeline indicates a rapid progression from licensing to investment commitment, reflecting the strategic priority placed on the asset by both corporations and state entities [2][5]. The accelerated schedule underscores the urgency of addressing energy supply constraints in the Caribbean region [1][4]. Stakeholders anticipate that the FID will unlock further capital expenditure required to bring the reserves into production [3][5].

Timeline and Investment Decisions

The transaction highlights the evolving dynamics of energy cooperation in the region, where cross-border resources are increasingly managed through joint commercial frameworks [1][2]. As the project moves toward the final investment decision, market observers will monitor regulatory approvals and infrastructure preparations closely [3][5]. The success of this partnership could serve as a model for future developments in the Deltana Platform and similar transboundary reserves [4][5]. Ultimately, the deal reinforces BP’s commitment to natural gas as a core component of its energy transition strategy while supporting Trinidad’s economic stability [1][3].

Sources

Energy sector Natural gas