Shell (SHEL.L) is in advanced talks with Venezuela’s government to expand its offshore natural gas operations by developing four large areas near the maritime border with Trinidad and Tobago. This expansion targets fields within the massive Mariscal Sucre and Loran complexes, which together could hold approximately 20 trillion cubic feet (tcf) of gas reserves. Shell is progressing with the 4.2 tcf Dragon field. A final investment decision (FID) is expected by the end of 2026. The company is seeking access to three additional fields—Patao, Mejillones, and Rio Caribe—which are part of the 12 tcf Mariscal Sucre project. Loran Field Shell is eyeing the 7.3 tcf Loran field, which neighbors the Manatee field it already operates in Trinidadian waters. The plan involves tying subsea wells from Loran back to the Manatee platform. The extracted gas is intended for transport to Trinidad for processing at the Atlantic LNG facility, which is currently operating below its 15.5 million metric tons per annum (mtpa) capacity due to supply shortages. Negotiations are taking place under the government of interim President Delcy Rodriguez. The project has gained momentum following the issuance of U.S. general licenses for energy exploration in Venezuela. However, the presence of Russian state-owned assets (transferred from Rosneft to Roszarubezhneft) in some Mariscal Sucre areas remains a hurdle to finalising agreements. Shell aims to achieve first gas production from the Dragon field by the third quarter of 2027, or potentially as early as 2026 if conditions permit.
