Shell has signed several agreements with the Venezuelan government covering onshore and offshore exploration for oil and natural gas, Reuters reported on Thursday.
The agreements follow a meeting between Venezuelan President Delcy Rodriguez and US Interior Secretary Doug Burgum earlier this week and are expected to pave the way for the development of the offshore Dragon gas project, which has suffered setbacks in recent years amid shifts in US policy and sanctions on Venezuela.
Venezuela’s legislature passed a package of reforms in January 2026 aimed at boosting investment in the country’s oil and gas sector.
The Dragon field lies in Venezuelan waters near the maritime border with Trinidad and Tobago and is estimated to hold reserves of up to 99.1 bcm (3.5 tcf) of gas. The project is expected to help supply Trinidad’s Atlantic LNG facility, which has been producing at below nameplate capacity due to gas shortages and has plans to begin decommissioning Train 1 in Q4 2026.
Along with BP, Shell owns equity in Trains 2, 3 and 4 at the facility, which together contribute a total of approximately 5.5 million tonnes per year of liquefaction capacity in each company’s portfolio. Both companies supply feed gas to the facility and receive tolling revenues from the project.
Trinidad’s Energy Minister Roodal Moonilal said on Thursday that the first gas exports from the Dragon field to Trinidad are scheduled begin in Q3 2027.
