Shell to Complete Exploration of Venezuela’s Dragon Field Before U.S. License Expires
British oil and gas company Shell plans to complete exploration activities at the Dragon gas field in Venezuela by May — the deadline set by the United States government for foreign companies to wind down operations in Venezuela’s energy sector, according to Reuters sources.
According to data from LSEG, in April 2025 the survey vessel Dona Jose II arrived in Venezuela to collect geological and technical data on behalf of Shell and the National Gas Company of Trinidad and Tobago (NGC). The offshore work is expected to conclude in the coming weeks. The information gathered will enable Shell to determine potential drilling sites and design a pipeline — in the event that the United States authorizes the continuation of the project. The plan is to export gas from Dragon to Trinidad, where it would be processed and liquefied.
Shell chartered the vessel following the decision by the administration of Donald Trump in early April 2025 to revoke the 2023 license for developing the field. Shell and NGC have been given until May 27 to halt all operations in Venezuela.
Representatives from Shell, NGC, and Venezuela’s state-owned oil company PDVSA have not yet commented on the situation.
In 2023, Venezuela granted Shell a 30-year license to develop the Dragon field. The original plan envisioned that gas exports would begin in 2024, with liquefaction taking place at Trinidad’s gas processing facilities, followed by overseas export.
Background on U.S. Sanctions
As Neftegaz i Kapital reports, the United States first imposed sanctions on Venezuela’s energy sector in 2019. Since then, foreign companies have been required to obtain special waivers from the U.S. government in order to work with PDVSA. The Biden administration had issued and extended such licenses for foreign firms operating in Venezuela. However, new sanctions were introduced during Donald Trump’s second term, citing “insufficient efforts” by Venezuelan President Nicolás Maduro to restore democracy and resolve the ongoing migration crisis. The Venezuelan government has characterized the sanctions as an act of economic warfare.
Strategic Importance of the Dragon Project
Trinidad and Tobago is Latin America’s leading exporter of liquefied natural gas (LNG) and a global leader in ammonia and methanol exports. However, the country faces declining natural gas reserves and is in urgent need of new offshore gas supplies from neighboring Venezuela to avoid future shortages.
The Dragon project represents a crucial opportunity for Trinidad to secure access to foreign gas resources and for Venezuela to begin monetizing its vast offshore gas reserves.
