British energy major Shell has received approval from the Venezuelan government to explore and export natural gas from a key offshore field, marking the latest move by international energy companies to expand their presence in the South American nation’s hydrocarbon sector.

The licence covers development of the Loran gas field, a project that has remained largely inactive for more than two decades. Venezuelan authorities said the field contains several gas deposits, some of which extend across the maritime boundary shared with Trinidad and Tobago.

Government officials said the project is expected to strengthen Venezuela’s natural gas industry and support the country’s ambitions to become a significant gas exporter.

The approval comes months after the Venezuelan administration introduced reforms aimed at attracting foreign investment into the oil and gas industry. The policy shift has encouraged several global energy companies to pursue new opportunities in the country.

Venezuela holds some of the world’s largest crude oil reserves and also possesses substantial natural gas resources, making it an attractive destination for energy investors despite years of economic and political challenges.

Shell representatives recently visited gas-processing facilities in eastern Venezuela as part of preparations linked to the company’s expanding operations in the country.

The latest development follows an earlier agreement involving Venezuela, Trinidad and Tobago, and Shell to produce and export gas from the Dragon field, another major offshore gas asset.

In addition to Shell, Venezuela has signed energy cooperation agreements with several international companies, including BP and Repsol, as it seeks to boost production and attract foreign capital into its energy sector.