Shell is currently advancing major offshore natural gas and onshore oil projects in Venezuela following a series of strategic agreements signed in March 2026. These initiatives follow a shift in U.S. policy and domestic Venezuelan oil reforms that have reopened the sector to foreign investment.
The Dragon Gas Project (Offshore)
The centerpiece of Shell’s activities is the Dragon gas field, a “mega project” located in Venezuelan waters near the maritime border with Trinidad and Tobago. The field is designed to supply natural gas to Trinidad and Tobago’s Atlantic LNG plant, helping to alleviate critical gas shortages in that country.
The field contains approximately 4.2 to 4.5 trillion cubic feet of gas reserves.
Shell aims to deliver the first gas to Trinidad by the third quarter of 2027.
Infrastructure: Plans include the construction of a roughly 16 km (10 mile) pipeline from the Dragon field to Shell’s existing facilities in Trinidad.
Onshore and Other Ventures
In addition to the Dragon project, Shell has signed agreements to develop various other resources:
Shell plans to develop the Carito and Pirital fields. These fields produce light and medium crude and natural gas, which are essential for blending Venezuela’s heavy oil for export.
Loran-Manatee: Shell is also involved in the development of the Loran-Manatee discovery, a massive cross-border deposit shared between Venezuela and Trinidad with total reserves exceeding 10 trillion cubic feet.
Technical Partners: Agreements involve collaborations with international firms like KBR and Baker Hughes, and the Venezuelan engineering company VEPICA.
Investment Status
As of late March 2026, Shell CEO Wael Sawan indicated that the company could take Final Investment Decisions (FIDs) on one or two of these Venezuelan projects before the end of the year. While general licenses from the U.S. Treasury’s Office of Foreign Assets Control (OFAC) have allowed these projects to proceed, they remain sensitive to shifting geopolitical tensions and sanctions.
Note by Alessandro Bazzoni