Venezuela and BP Sign Agreement to Boost Offshore Gas Exploration

BP Plc and Venezuela have signed a memorandum of understanding to explore for natural gas offshore, as international energy companies increase their presence in the South American nation’s energy sector following the U.S. Capture of Nicolas Maduro.

The agreement, announced on April 29, 2026, was established between BP and the Venezuelan state firm Petroleos de Venezuela SA, also known as PDVSA.

potential areas for co-operation in material gas and future exploration

BP emailed statement

The memorandum of understanding outlines these goals as part of a broader effort to revitalize Venezuela’s energy industry. The deal follows an energy conference held in Caracas, which attracted a significant number of international investors, and companies.

European Energy Sector Expansion

European oil and gas companies have shown particular interest in advancing operations within Venezuela. Several major firms have recently announced projects or are in the process of finalizing agreements with the state energy company.

Italian energy major Eni SpA announced an oil project on April 28, 2026. Eni has developed a plan to begin exporting natural gas in partnership with Spain’s Repsol SA, with exports scheduled to start in 2031.

Other international firms are also pursuing opportunities in the region. Shell Plc has been working on the revival of its Dragon project, located near the border with Trinidad. Meanwhile, the French company TotalEnergies SE is reportedly nearing the finalization of trading contracts with PDVSA.

BP Strategic Shift

The move into Venezuela aligns with a shift in corporate strategy under BP’s new Chief Executive Officer, Meg O’Neill. O’Neill is seeking to increase the company’s long-term reserves by refocusing on traditional oil and gas assets.

This strategic pivot follows what has been described as a failed push into low-carbon ventures by the company.