BP has secured a license to explore a gasfield off Venezuela’s coast, joining Abu Dhabi National Oil Company (ADNOC) and a Qatari firm with Trump ties. This move signals Big Oil’s return to Venezuela post the 2023 U.S. intervention that ousted Nicolás Maduro. Venezuela produces just over 1mn barrels of oil daily, with the U.S. having collected over $13bn from seized oil. The deal includes XRG (ADNOC’s overseas arm) and UCC Oil and Gas, owned by Qatari brothers Moutaz and Ramez Al-Khayyat, who have close ties to the Trump administration.

The Qatari-Syrian brothers attended Trump’s inauguration and are linked to Ivanka Trump’s Albania project. UCC, expanding into upstream energy, recently gained a Libya concession without competition. BP’s involvement reflects a "hedged bet" on Venezuela’s gas potential, leveraging the Atlantic LNG terminal in Trinidad and Tobago. The new hydrocarbons law weakened state oil giant PDVSA, aiding private investment.

Trump praised Venezuela’s new leadership, Delcy Rodríguez, for attracting oil deals. However, ExxonMobil remains cautious, deeming Venezuela "uninvestable." Chevron continues operations despite sanctions. BP’s focus shifts from green energy to oil, aligning with broader industry trends. The Loran Phase 2 gasfield holds 4tn cubic feet of recoverable gas.

Sanctions against Venezuela have eased under Biden, but challenges persist. BP’s move contrasts with Exxon’s hesitation, highlighting strategic risks. The $13bn revenue from U.S.-seized oil underscores the country’s economic stakes. Venezuela’s output dropped from 3.5mn barrels/day in the 1970s due to corruption and mismanagement.