News wire — Oil and gas group Shell plans to complete a marine survey at Venezuela’s offshore Dragon gas field before a U.S.-set May deadline to wind down all licenses related to energy projects in the country, sources close to the preparations said.
Colombia-flagged survey vessel Dona Jose II arrived in U.S.-sanctioned Venezuela this month to gather data for Shell and Trinidad’s National Gas Company (NGCTT.UL), according to LSEG vessel monitoring data.
The exploration work, to be completed in the coming weeks, will allow the company to determine drilling locations and pipeline design should Washington eventually allow the project’s development, planned to provide gas to Trinidad, the two sources added.
The vessel had been chartered by Shell when U.S. President Donald Trump’s administration earlier this month announced the cancellation of a license it granted in 2023 to plan and develop the Dragon field. Shell and NGC were given until May 27 to wind down operations in Venezuela.
Since Washington first imposed energy sanctions on Venezuela in 2019, U.S. licenses are needed for foreign companies to negotiate, plan and develop oil and gas projects with state-owned company PDVSA.
Shell, NGC and PDVSA did not immediately reply to requests for comment.
Trinidad is Latin America’s largest exporter of liquefied natural gas (LNG) and one of the world’s largest exporters of ammonia and methanol, but the Caribbean nation needs to develop offshore fields in Venezuela and on the maritime border to counter its declining reserves and secure supply.
The Dragon gas project had been seen as one of the few real opportunities for Trinidad to secure foreign gas supply for its industries, while allowing Venezuela to begin monetizing its vast offshore gas reserves.
Venezuela in 2023 granted Shell a 30-year license to operate the Dragon field, with gas exports expected to begin as early as next year to be turned into LNG in Trinidad.
The U.S. has accused Venezuelan President Nicolas Maduro of not doing enough to restore democracy and secure the return of migrants illegally in the U.S. Venezuelan officials have said the sanctions amount to an “economic war”.
Reporting by Curtis Williams and Marianna Parraga in Houston; Editing by Jan Harvey – Reuters
