Shell launched a tender process to contract drilling services for the Dragon project, a gas field located in Venezuelan waters near the maritime border with Trinidad and Tobago.
According to sources close to the process, the company plans to drill four wells starting in the second quarter of 2027, provided it makes a favorable final investment decision (FID). The drilling contract award is expected by the end of September, although execution will depend on final project approval.
Dragon contains estimated resources of 4.2 trillion cubic feet (Tcf) of natural gas and is one of the most significant offshore developments in the Caribbean region.
Dragon will connect Venezuelan resources to existing LNG infrastructure
Unlike many offshore projects that require building full processing and export facilities, Dragon relies on infrastructure already developed in Trinidad and Tobago.
The plan calls for transporting the produced gas via a subsea pipeline to Trinidad, where approximately 70% of the volume would feed the Atlantic LNG liquefaction plant, while the remaining 30% would be allocated to the petrochemical sector.
From a field development engineering standpoint, this model significantly reduces the required investment by leveraging existing processing, export, and marketing infrastructure instead of building new LNG facilities in Venezuela.
Reusing industrial assets helps shorten execution timelines and improve project profitability, especially in an environment of high regulatory uncertainty.
Declining gas supply in Trinidad drives new regional developments
In recent years, domestic gas production in Trinidad and Tobago has shown a downward trend that has affected the operation of its export industry.
Lower gas availability has forced reduced utilization of Atlantic LNG liquefaction plants and has led to the shutdown or reduced output at various petrochemical facilities dedicated to producing ammonia and methanol.
In this context, Dragon represents a supply source capable of helping restore utilization of already installed industrial infrastructure, avoiding the underuse of assets with high economic value.
From an energy planning perspective, the project seeks to optimize the use of existing capacity rather than develop new export plants.
Shell: Project viability depends on engineering and the regulatory environment
Shell completed in 2025 the marine studies needed to define the location of future wells and the preliminary route of the subsea pipeline.
However, the project’s progress has been shaped by changes in the international authorization regime applicable to Venezuela. Although the company and Trinidad and Tobago’s National Gas Company (NGC) have a development license granted by Venezuela in 2024, advancing the project has also required authorizations issued by the United States due to the sanctions framework in place in previous years.
This combination of technical, regulatory, and commercial factors makes the final investment decision a process in which engineering must move forward in coordination with the project’s legal and financial stability.
Source: https://www.reuters.com/
