Shell Plc Signs Venezuela Oil and Gas Deals, Putting Dragon Gas Project Back in Play

CARACAS, March 6, 2026, 04:13 (GMT-4)

Shell Plc on Thursday inked several oil and gas deals with Venezuela, aiming to jumpstart development at the offshore Dragon field after years of delays, the company announced. Trinidad’s Energy Minister Roodal Moonilal added that under the new agreement, first gas exports to Trinidad are now expected in the third quarter of 2027.

The point here is straightforward: gas from Dragon could help fill a supply gap at Trinidad’s Atlantic LNG plant, which has been struggling to source enough fuel for exports. LSEG figures put shipments at 9 million metric tons in 2025—well below the facility’s 12 million capacity. Shell and BP control 45% each, while Trinidad’s National Gas Company owns what’s left.

Timing is key here. Washington recently eased restrictions on Venezuela’s energy sector, handing out broad blanket licenses that allow firms to operate despite ongoing sanctions. On Friday, the gas market got even tighter after turmoil in the Middle East pushed buyers to scramble for alternate cargoes. “Cargoes have started to be diverted to Asia,” Energy Aspects analyst Kesher Sumeet noted, highlighting just how much value new Atlantic Basin supply could offer—even though the Dragon project is still a ways off. Reuters

Shell announced deals covering both offshore natural gas and onshore oil and gas prospects. The company has also lined up technical and commercial agreements involving Venezuelan engineering outfit VEPICA, KBR out of the U.S., and Baker Hughes, the oilfield services group.

Dragon finally gets its shot. Back in February, a Shell spokesperson described the new U.S. exploration licenses as a “positive signal” that moved the project along. CEO Wael Sawan, speaking elsewhere, said the opportunity might be “activated within months.” Reuters

Dragon’s reserves come to roughly 4.5 trillion cubic feet of gas. Shell is pushing to send that supply to Trinidad, where it can be processed and shipped out—a move with big implications for Atlantic LNG. That Trinidad facility put up about 10% of Shell’s total global LNG production last year, and it was behind 15% of BP’s LNG exports.

Peers have been active as well. BP is pushing ahead with the Manakin-Cocuina cross-border gas initiative alongside Trinidad. Over in Venezuela, Chevron and Repsol stand out among foreign companies that have either grown or stuck with their stakes since the U.S. loosened sanctions earlier this year.

Dragon’s progress has been anything but smooth. Shifting U.S. policies have disrupted the timeline more than once, while Venezuela froze the field even after an earlier American green light—Caracas ended up suspending energy deals with Trinidad. Years of neglect and aging equipment in Venezuela keep the project’s future murky.

Venezuela slashed taxes in its January oil reform, bumping up the oil ministry’s authority while loosening the reins for private producers—a bid to lure foreign money back to the country’s energy patch. Visiting for two days this week, U.S. Interior Secretary Doug Burgum suggested the door could open even wider, hinting at additional mining licenses in the pipeline.

Back in February, Sawan called the project “good for the Venezuelan people” and “great for the Trinidadians.” Shell, for its part, is looking to use the deal to prop up output at a plant that’s still crucial to its LNG business. Reuters

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