Shell has confirmed that new U.S. general licenses issued in February 2026 will allow it to advance the Dragon natural gas project in Venezuelan waters.
The development follows a series of regulatory shifts by the U.S. Treasury’s Office of Foreign Assets Control (OFAC) aimed at facilitating energy exploration in the region:
A Shell spokesperson described the licenses as a “positive signal” that enables the company to resume planning for the field, which holds an estimated 4.5 trillion cubic feet of natural gas reserves.
Shell CEO Wael Sawan stated the company aims to begin gas production from the Dragon field within three years.
The project intends to export gas via the Atlantic LNG facility in Trinidad and Tobago, where Shell and BP each hold a 45% stake. This facility operated below capacity in 2025 due to supply shortages.
The newly issued General License 50 (GL 50) specifically authorises Shell, along with BP, Chevron, Eni, and Repsol, to operate in Venezuela’s oil and gas sector.
The project had previously faced numerous delays due to shifting U.S. sanctions and political instability in Venezuela.
Note by Alessandro Bazzoni