Shell plans to drill at Venezuela's offshore gas field in 2027, according to sources
Shell has begun tendering drilling services for its Dragon off-shore gas project in eastern Venezuela. This is part of a plan to start drilling 'four wells in this area in the second quarter 2027. People familiar with the process say that the contract should be awarded before the end of September. The contract will not go into effect until a final investment decision has been made on the 4.2 trillion cubic-foot project. The requirement shows that the company has taken concrete steps to progress the long-delayed project after years of uncertainty due to sanctions. The U.S. has changed its policy towards Venezuela, which has caused the Dragon project to be repeatedly halted. The Trump administration revoked earlier licenses that were granted by former president Joe Biden, which had allowed Shell and NGC move forward with Dragon and other cross border gas developments.
Washington issued new approvals to allow the project, and others in oil industry, to proceed after the former Venezuelan president Nicolas Maduro was removed from power in early 2026. Shell and Venezuela's Oil Ministry?did not immediately respond to an inquiry for comment. Shell is negotiating separately with Venezuela's government oil and gas fields that could greatly expand the company's presence in Venezuela. The Dragon project is located in Venezuelan water near Trinidad and Tobago's maritime border. It is the OPEC nation's second offshore development. This is a major initiative to help Trinidad address its worsening natural gas shortage. Shell intends to transport gas to Trinidad from Dragon, with 70% of the production going to the Caribbean nation's flagship Atlantic LNG Export Facility and 30% to the country's Petrochemical Sector, the Trinidad government has previously stated.
Trinidad's gas production is declining, forcing LNG and Petrochemical producers to work below capacity. This has contributed to the shutdown of several ammonia and Methanol plants and Atlantic LNG Train 1, which produces 4 mtpa. Shell?has said previously that Dragon could replenish supplies to Atlantic LNG. The British company, BP, and Trinidad's National Gas Company each own 45% of the LNG. Shell completed a marine survey last year for Dragon, which helped determine drilling locations and the routing of pipelines. Venezuela granted the company and NGC a 30-year licence for the project in 2024. Initial output is expected to be achieved in just three years. Reporting by Curtis Williams, Houston; Editing and proofreading by Mark Porter
(source: Reuters)
