This month, the Trump administration revoked a 2023 licence for Shell and NGC to pursue the Dragon field project.
Shell is set to complete a marine survey at Venezuela’s offshore Dragon gas field in the upcoming weeks, ahead of a US-imposed deadline to cease operations, reported Reuters, citing sources close to the preparations.
The survey will be conducted by the Colombia-flagged vessel Dona Jose II, aiming to identify potential drilling locations and pipeline designs for the project, which is intended to supply gas to Trinidad.
The vessel is chartered by Shell and has arrived in US-sanctioned Venezuela to gather data for both Shell and Trinidad’s National Gas Company (NGC), as per LSEG vessel monitoring data.
Earlier this month, the Trump administration cancelled a licence granted in 2023 that allowed Shell and NGC to plan and develop the Dragon field.
Both companies now have until 27 May to wind down their operations in Venezuela.
Since 2019, US sanctions on Venezuela have necessitated special licences for foreign companies to engage with PDVSA, the state-owned oil and gas entity, on energy projects.
Neither Shell, NGC, nor the state-owned PDVSA have responded to requests for comment regarding the survey and the impending deadline.
Trinidad, Latin America’s LNG exporter, relies on developing offshore fields in Venezuela and along the maritime border to maintain reserves and secure industrial supply.
The Dragon gas project represents a opportunity for Trinidad to obtain foreign gas and for Venezuela to capitalise on its extensive offshore gas reserves.
In 2023, Venezuela awarded Shell a 30-year licence to operate the Dragon field, with potential gas exports to Trinidad for LNG conversion expected to commence as early as next year.
The US has criticised Venezuelan President Nicolas Maduro for insufficient efforts towards restoring democracy and addressing the issue of migrants in the US.
Venezuelan authorities have condemned the sanctions as an “economic war”.
Earlier this month, Shell initiated production at the Dover subsea tieback project in the Gulf of Mexico.
