Shell plans to drill at Venezuela's offshore gas field in 2027, according to sources
Shell has started tendering drilling services for its Dragon off-shore gas project in eastern Venezuela. This is part of a plan to begin drilling four wells here?in the second quarter of 2027.
People say that the contract should be awarded before the end of September. The contract will not be effective 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 advance the development, which was delayed for years 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 granted by former President Joe Biden, which had allowed Shell and NGC move forward with the?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 at the beginning of 2026.
Shell said on Tuesday that it was "continuing to progress the Dragon Project in full compliance" with?applicable law, regulations and sanctions.
The Venezuelan Oil Ministry didn't immediately respond to an inquiry for comment. The company is negotiating separately with the Venezuelan Government oil and gas fields that could greatly expand its presence within the country. 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 viewed by many as a key initiative to help Trinidad address its worsening natural gas shortage that has led to a reduction of output at the country’s liquefied gas and petrochemical plants. Shell intends to transport gas to Trinidad from Dragon, with about 70% of the production going to the Caribbean nation’s flagship Atlantic LNG Export Facility and the remaining 30% to the country’s petrochemical industry, according to the Trinidad government.
Trinidad's gas production is declining, forcing LNG and Petrochemical producers to work below capacity. This has contributed to the "shutdown" or "idling" of several ammonia plants and methanol factories as well as Atlantic LNG Train 1, which produces?4mtpa. Shell said previously that Dragon would be able to replenish supplies for Atlantic LNG. The British company, BP, and Trinidad's National gas Company each own 45% of the LNG. Shell conducted a marine survey for Dragon last year, 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)
