Shell Plans Marine Survey at Venezuela's Dragon Gas Field Ahead of Deadline

Shell is moving forward with a marine survey at Venezuela’s offshore Dragon gas field, aiming to gather essential data for future drilling and pipeline design to supply gas to Trinidad. The survey, conducted by the vessel Dona Jose II, comes just before a U.S.-imposed deadline requiring Shell and Trinidad’s National Gas Company to wind down their Venezuelan operations by late May after the revocation of a previously granted license. The Dragon field represents a critical opportunity for Trinidad, which faces declining natural gas reserves, to secure long-term energy supplies, while also allowing Venezuela to monetize its extensive offshore gas reserves. U.S. sanctions since 2019 have required foreign companies to obtain special licenses to operate with Venezuela’s state oil company PDVSA, complicating energy development in the region. The U.S. government cites Venezuela’s lack of progress on democratic reforms as justification for the sanctions, while Venezuelan officials label them as economic warfare. Shell’s actions reflect hope that U.S. policy may eventually change, enabling the resumption of the project.