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Update: Shell Secures Agreements for Venezuelan Energy Projects

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(Updates throughout with statements from Shell, Venezuelan government.)

Energy giant Shell (SHEL) confirmed tothat its Venezuelan unit on Thursday secured a government license to explore and exploit natural gas from the 7-trillion-cubic-feet Loran offshore gas field.

The licence allows Shell to extract 1.7 tcf of gas from the Loran field in Block 2 of the Plataforma Deltana, located in Venezuelan waters, through its Manatee platform in Trinidadian waters, Shell said in a statement shared with.

The Loran project is awaiting a final investment decision and Trinidad government approvals.

In addition, Shell has signed agreements with Venezuelan state-owned oil and gas company PDVSA to provide services and equipment to help expand output capacity, improve operations and boost gas recovery at the Carito and Pirital oil and gas production units located onshore in the northern region of Monagas State, the statement added.

In a statement issued on Friday, the Venezuelan government said it has signed phase 1 of the license with Shell for the development and production of the Loran field and the gas agreement has been ratified by interim President Delcy Rodriguez.

The deal is part of the five cooperation agreements entered into by the Venezuelan government and Shell on Thursday.

"These agreements sought to boost the country's energy capacity for both domestic consumption and to consolidate Venezuela's position as a gas exporter, taking advantage of the vast reserves of the asset, which has seven fields, six of them cross-border with Trinidad and Tobago," according to a government statement issued Thursday.

The agreements were a result of a technical-financial alliance formed in March to carry out projects in northern Monagas state. These projects aim to increase the production of light crude required for the Merey 16 Blend and ensure a steady supply of feedstock to the Puerto La Cruz Refinery for fuel production, the government said.

"The subscription also included the acquisition of spare parts for the compression fleet, which allowed for a reduction in flue gas and the recovery of the resource for its incorporation into the electrical, industrial, petrochemical and domestic sectors," the statement added.

According to a Reuters report last week, the agreements will make Shell one of the top partners of PDVSA for energy development in the country.

has also reached out to the Venezuelan Petroleum Ministry separately for a comment.

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