Shell Eyes Major Expansion in Venezuelan Offshore Gas Fields

Shell is in advanced talks with Venezuela's government to expand its operations in the country's large offshore gas fields near Trinidad. The energy giant aims to develop the Dragon gas field and neighboring areas, with plans to process the gas in Trinidad for export as LNG.

Shell is in advanced discussions with Venezuela's government to enhance its presence in some of the country's largest offshore natural gas fields, including the Dragon field near Trinidad and Tobago. This move aligns with Shell's long-standing goal to boost its gas reserves in Venezuela.

The energy major plans to widen its operational footprint by targeting three other fields that are part of the significant Mariscal Sucre project along the eastern coastline. Shell has also set its sights on the 7.3-tcf Loran field, which straddles the border into Trinidad, encompassing an estimated 20 tcf of combined reserves.

With an eye on exporting liquefied natural gas, Shell aims to transport Venezuelan gas to Trinidad for processing. This strategy supports its Atlantic LNG project, which has underperformed due to supply shortages. Meanwhile, Chevron's shift towards heavy oil projects may open additional opportunities for Shell.

(With inputs from agencies.)