Shell Moves Forward with Marine Survey at Venezuela’s Dragon Gas Field

Shell is pushing ahead with plans to complete a marine survey at Venezuela’s offshore Dragon gas field before the looming deadline set by the U.S. government to wind down all licenses related to energy projects in the country, according to sources familiar with the preparations.

The Colombia-flagged survey vessel, Dona Jose II, recently arrived in U.S.-sanctioned Venezuela to gather crucial data for Shell and Trinidad’s National Gas Company, as indicated by LSEG vessel monitoring data.

The exploration work, set to be finalized in the coming weeks, will enable the company to pinpoint drilling locations and design pipelines in anticipation of potential project development if Washington grants approval. The project aims to supply gas to Trinidad, the sources disclosed.

Shell had chartered the vessel prior to the recent announcement by the U.S. President Donald Trump’s administration canceling a license granted in 2023 for the planning and development of the Dragon field. The company, along with NGC, was given until May 27 to phase out operations in Venezuela.

Since the imposition of energy sanctions on Venezuela by the U.S. in 2019, foreign companies require U.S. licenses to engage in negotiations, planning, and development of oil and gas projects involving PDVSA, the state-owned company.

Neither Shell, NGC, nor PDVSA has responded to requests for comment at this time.

Trinidad’s Energy Outlook

Trinidad, Latin America’s largest exporter of liquefied natural gas (LNG) and a major global exporter of ammonia and methanol, is facing the challenge of declining reserves and the need to secure a stable supply. To address this, the nation is looking to develop offshore fields in Venezuela and along the maritime border.

The Dragon gas project has been identified as a key opportunity for Trinidad to secure foreign gas supply for its industries while also enabling Venezuela to tap into its vast offshore gas reserves.

In 2023, Venezuela granted Shell a 30-year license to operate the Dragon field, with gas exports expected to commence as early as next year for processing into LNG in Trinidad.

The U.S. government has criticized Venezuelan President Nicolas Maduro for failing to uphold democratic principles and address the issue of migrants illegally in the U.S., while Venezuelan officials have characterized the sanctions as an “economic war”.

With the marine survey underway and the project’s future hanging in the balance, the energy industry will be closely monitoring developments at the Dragon gas field in Venezuela.

(Reuters)