Shell is advancing preparations for drilling at the Dragon offshore gas field in eastern Venezuela, with tendering now under way for drilling services, reported Reuters, citing sources.
The company is planning to begin a four-well campaign at Dragon in the second quarter of 2027 (Q2 2027).
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The drilling services contract is expected to be announced by the end of September. However, its execution remains contingent on a positive final investment decision for developing the field, which holds an estimated 4.2 trillion cubic feet of natural gas.
This tendering process follows a long period of delays caused largely by changes in US policy towards Venezuela.
The Trump administration rescinded licences that had allowed Shell and Trinidad and Tobago’s National Gas Company (NGC) to develop cross-border gas projects, including Dragon.
New US authorisations were later put in place, permitting both the oil and gas industry and the Dragon project to move forward, following the capture of former Venezuelan President Nicolas Maduro by US forces in early 2026.
Shell stated that it continues to progress the Dragon project in full compliance with applicable laws, regulations and sanctions.
According to previous statements from the Trinidad Government, gas produced at Dragon will be exported to Trinidad. Roughly 70% is set to be used for the country’s Atlantic liquefied natural gas (LNG) facility and the remaining 30% for the petrochemical sector.
Trinidad has seen a decline in domestic gas production, which has constrained LNG and petrochemical output and led to the closure or idling of several facilities, including Atlantic LNG’s Train 1.
Shell and NGC were issued a 30-year operating licence for the Dragon project by Venezuela in 2024 and have stated that initial production could begin in three years.
Last year, Shell conducted a marine survey at Dragon to identify drilling locations and potential pipeline routes.
Separately, Shell is engaged in negotiations with the Venezuelan Government regarding additional oil and gas licences to potentially expand its presence in the country.
Earlier this month, Shell, through its subsidiary Shell Offshore, announced plans to divest its 50% non-operated working stake in the Na Kika platform and associated fields in the Gulf of Mexico for $1.7bn (£1.28bn).
