KEY POINTS
- Shell has signed multiple oil and gas agreements with the Venezuelan government, including plans to develop the offshore Dragon gas project.
- First gas exports from Venezuela to Trinidad are anticipated by the third quarter of 2027 to support production at the Atlantic LNG plant.
- Venezuela’s recent oil sector reforms aim to boost foreign investment, and state media said the deals reaffirm the country’s appeal to international energy partners.
Global energy company Shell has signed a series of oil and gas agreements with the Venezuelan government that pave the way for development of the long-delayed Dragon offshore gas project and set the stage for the first exports of natural gas to Trinidad in the third quarter of 2027.
The agreements cover both offshore gas opportunities and onshore oil and gas projects and include partnerships with Venezuelan and international energy firms.
The new contracts follow meetings between United States officials and Venezuelan leadership, reflecting improved international engagement in the country’s energy sector. Shell has entered technical and commercial agreements with Venezuelan engineering firm VEPICA, U.S. oil services company Baker Hughes, and KBR as part of the expanded cooperation.
A key element of the agreements is the revival of the Dragon gas project, an offshore field with significant natural gas reserves that faced delays due to shifting U.S. policies. Under the new arrangements, the Dragon field will be developed, with first gas shipments to Trinidad expected by the third quarter of 2027.
The project is intended to supply additional gas to Trinidad’s Atlantic LNG plant, which is co-owned by Shell, BP, and the National Gas Company of Trinidad, and to address shortages that have limited LNG production below the plant’s capacity.
Regional reforms encourage investment
Venezuela’s legislature introduced major oil sector reforms in January 2026, including tax reductions, expanded authority for the oil ministry, and increased autonomy for private producers.
These measures are designed to attract foreign investment back to the country’s energy sector. Venezuelan state media described the agreements with Shell as reinforcing Venezuela’s position as a safe and reliable destination for international energy investment.
The Dragon project is expected to contribute to regional energy stability, support LNG production and exports from Trinidad, and strengthen economic prospects for both Venezuela and its energy partners.
