Shell has launched a tender for drilling services covering four wells at the Dragon offshore gas project in eastern Venezuela, according to two people familiar with the process.
The drilling programme is scheduled to begin in the second quarter of 2027. The contract is expected to be awarded by the end of September, but it will only take effect if Shell makes a positive final investment decision on the 4.2 trillion-cubic-foot development.
The tender represents a further step in efforts to advance Dragon after the project was repeatedly delayed by changes in U.S. policy toward Venezuela.
Licences granted under former U.S. President Joe Biden had allowed Shell and Trinidad’s National Gas Company (NGC) to proceed with Dragon and other cross-border gas developments. The Trump administration later revoked those approvals.
Washington subsequently issued new authorisations allowing Dragon and other oil industry projects to continue after former Venezuelan President Nicolas Maduro was removed from power in early 2026.
Shell said on Tuesday that it continued to advance the Dragon project in compliance with applicable laws, regulations and sanctions.
Venezuela’s Oil Ministry did not immediately respond to a request for comment. Shell is also holding separate talks with the Venezuelan government over oil and gas areas that could expand its presence in the country.
Dragon is located in Venezuelan waters near the maritime border with Trinidad and Tobago and is set to become Venezuela’s second offshore gas development.
Gas from the project is planned to be transported to Trinidad. About 70% of production has been allocated to the Atlantic LNG export facility, while the remaining 30% is intended for the country’s petrochemical sector, according to previous statements from the Trinidad government.
Trinidad’s domestic gas production has declined, forcing LNG and petrochemical facilities to operate below capacity. Several ammonia and methanol plants have been shut down or idled, along with Atlantic LNG’s 4 mtpa Train 1.
Shell has previously said Dragon could help replenish gas supplies to Atlantic LNG. Shell and BP each own 45% of the facility, while NGC holds the remaining interest.
A marine survey completed by Shell last year helped determine drilling locations and pipeline routing. Venezuela granted Shell and NGC a 30-year licence for Dragon in 2024, and the companies have said initial production could begin in three years.
Source: Reuters
