Qatar negotiates entry into new oil and gas areas in Venezuela

Qatari firm UCC Oil and Gas Holding is in talks about a possible entry into new oil and gas areas in Venezuela, said the company's head of Upstream, Erik Keskula, on Tuesday, September 29, according to AlbertoNews - Periodismo sin censura.

The remarks follow UCC's partnership last month with BP and a unit of ADNOC, the state energy company of the United Arab Emirates, to participate in the development of the Loran gas project, located off the Venezuelan coast.

UCC's possible expansion into new areas of Venezuela's energy sector adds to the interest of international companies in taking part in the country's hydrocarbon projects. The Loran project is one of the most significant international initiatives in Venezuela's gas sector and involves foreign partners in developing resources located off the country's coast.

Keskula confirmed that the company is holding talks about its possible participation in other areas, but did not offer details on the potential projects, locations or terms of the negotiations. In an environment where a high country risk premium makes credit more expensive and deters direct investment, seeking foreign capital through strategic partnerships becomes essential to revive oil infrastructure given the financing constraints of the local state company.