en.Wedoany.com Reported - July 14, 2026, Shell has officially launched a tender for drilling services for its Dragon offshore natural gas project in eastern Venezuela, part of its plan to drill four wells in the area by the second quarter of 2027.
According to sources, the drilling services contract is expected to be awarded by the end of September. The contract will take effect after the final investment decision for the project, which has natural gas reserves of approximately 4.2 trillion cubic feet. This tender indicates that Shell has taken concrete steps to advance the project, which had been delayed for years due to sanctions.
The Dragon project has experienced multiple setbacks due to frequent shifts in U.S. policy toward Venezuela. The Trump administration revoked early licenses granted under former President Joe Biden, which had allowed Shell and Trinidad's National Gas Company (NGC) to advance the Dragon and other cross-border natural gas development projects. After former Venezuelan President Nicolás Maduro was removed from power in early 2026, the U.S. issued new permits, allowing the project and other oil industry initiatives to proceed.
Shell stated on Tuesday that it is "advancing the Dragon project in full compliance with applicable laws, regulations, and sanctions." Venezuela's Ministry of Oil did not immediately respond to a request for comment. The company is also in separate negotiations with the Venezuelan government over other oil and gas fields that could further expand its footprint in the country.
Located in Venezuelan waters near the maritime border with Trinidad and Tobago, the Dragon project is Venezuela's second offshore development. It is widely seen as a key initiative to help Trinidad address its growing natural gas shortage. Declining gas production in Trinidad has led to reduced output at its liquefied natural gas (LNG) and petrochemical plants. According to the Trinidadian government, Shell plans to transport gas from the Dragon project to Trinidad, with approximately 70% of production supplying the flagship Atlantic LNG Export Facility and the remaining 30% going to the petrochemical sector.
The continued decline in Trinidad's natural gas output has forced LNG and petrochemical producers to operate below capacity, resulting in the "closure" or "idling" of several ammonia and methanol plants, as well as the 4 million tonnes per year Atlantic LNG Train 1. Shell previously stated that the Dragon project could supplement supply to the Atlantic LNG facility. Shell, BP, and Trinidad's National Gas Company each hold a 45% stake in the LNG facility. Shell completed marine surveys for the Dragon project last year, helping to determine drilling locations and pipeline routes. Venezuela granted Shell and NGC a 30-year license for the project in 2024. Initial output from the project is expected within just three years.
