US Approval Unlocks Cross-Border Gas Venture for BP

US OFAC grants BP a new license to develop the cross-border Manakin-Cocuina gas field, resolving a sanctions impasse and boosting Trinidad's LNG supply.

A key regulatory hurdle has been cleared for energy giant BP, paving the way for a significant international gas project. The US Office of Foreign Assets Control (OFAC) has issued a new general license, granting BP and its partners explicit authorization to collaborate with the Venezuelan government and its state-owned entities. This move resolves a major sanctions-related impasse that had stalled development.

Project Overview and Historical Context

The focus is the offshore Manakin-Cocuina gas field, a cross-border reservoir holding an estimated 1 trillion cubic feet of natural gas. The field comprises two discoveries: the Cocuina sector in Venezuelan waters, first identified in 1983, and the Manakin sector within Trinidad & Tobago's maritime territory, confirmed in 2000. Approximately 66% of the reserves are located in Trinidad & Tobago's zone, with the remainder in Venezuela's.

BP operates the Trinidad & Tobago portion of the field. The company, alongside Trinidad's National Gas Company, had initially announced plans to proceed following a Venezuelan development license in July 2024. However, work was halted in 2025 when OFAC determined a prior special license was insufficient under the standing US sanctions regime. The newly issued license is designed to streamline operations across the maritime border.

Strategic Importance for Trinidad & Tobago

For Trinidad & Tobago, the successful development of Manakin-Cocuina addresses a critical domestic shortfall. The nation has been grappling with a persistent gas supply deficit, which has previously constrained the operation of its liquefied natural gas (LNG) export facilities and petrochemical plants, limiting production and export capacity.

BP's strategy involves piping the extracted gas to Trinidad for processing and subsequent export as LNG. The company holds a 45% stake in the Atlantic LNG facilities, the country's primary LNG export hub. Additional volumes from this project would therefore bolster the utilization rate of these assets and reinforce Trinidad & Tobago's position as a key LNG exporter in the Atlantic basin. For BP, it translates to increased volume within its global gas portfolio.

Diplomatic and Market Implications

The advancement of this venture underscores its deep reliance on political and regulatory frameworks. BP acknowledged the diplomatic efforts of the Trinidad & Tobago government in facilitating cooperation between the companies and the two nations involved.

On the trading floor, BP's shares showed little movement following the announcement. The stock price was recorded at 5.42 euros, remaining just below its 52-week high of 5.50 euros.

The formal agreement between the Venezuelan and Trinidadian governments for the field's joint development remains a foundational requirement, ensuring the project can progress and scale effectively.