Mérida, April 8, 2026 (venezuelanalysis.com) – Energy multinational Shell is reportedly in advanced negotiations with the Venezuelan government to expand its operations in the country’s offshore natural gas fields
According to Reuters, the London-based oil and gas giant is seeking rights to exploit four major fields in Venezuelan waters near the maritime border with Trinidad and Tobago.
Shell wants to move beyond the 4.2 trillion cubic feet (tcf) Dragon field project, which it is set to develop alongside Trinidad’s National Gas Company (NGC) after receiving a 30-year license from the Venezuelan government in December 2023.
The company is currently targeting three additional fields that, together with Dragon, comprise the Mariscal Sucre project: Río Caribe, Patao, and Mejillones. The four fields represent approximately 12 tcf of reserves combined.
Shell likewise aims to accelerate operations in the 7.3 tcf Loran field, which forms part of the Loran-Manatee cross-border reservoir with Trinidad. The firm is already developing the Manatee side in Trinidadian waters, and spokespeople referred to Loran, which remains largely untapped, as an “attractive investment opportunity.”
If the deals are finalized, Shell would gain access to a combined resource base of approximately 20 tcf of Venezuelan natural gas, with plans to process it into liquefied natural gas (LNG) in Trinidadian facilities.
Shell CEO Wael Sawan stated during the late March CERAWeek conference in Houston that the company could reach a final investment decision (FID) on at least two Venezuelan projects “before the end of this year, if afforded the right fiscal and legal frameworks.” Sawan added that there is “a long way to go” before the projects launch but that he was “encouraged” by recent progress.
A primary hurdle in the current negotiations is the status of the Río Caribe and Mejillones fields, which had partial ownership stakes previously assigned to Rosneft and then transferred to Russian state-owned Roszarubezhneft in 2020. Both fields have remained largely untouched.
In a statement to Reuters, a Shell spokesperson confirmed that the Russian part-ownership is “a problem” but expressed confidence in overcoming it.
For its part, the government of Trinidad and Tobago has maintained a supportive stance toward the integration of Venezuelan gas into its domestic infrastructure. Port of Spain possesses significant idle capacity at its Atlantic LNG facility, partly owned by Shell, due to declining domestic production in recent years.
The Trinidadian Energy Chamber recently expressed optimism that the expanded Shell projects in Venezuelan waters would “boost [Trinidadian] exports and generate much-needed foreign currency.”
However, the recent negotiations have drawn internal scrutiny. Former Energy Minister Kevin Ramnarine noted that while the deals will benefit Trinidad’s LNG exports, it effectively transitions the country into a gas importer.
The acceleration of talks for natural gas concession projects in Venezuelan waters follows the January 2026 reform of the Caribbean nation’s Organic Hydrocarbon Law. The pro-business overhaul granted private corporations significant benefits in terms of reduced fiscal responsibilities and increased control over operations and sales.
In addition to offshore natural gas ventures, Shell additionally signed agreements to take over light and medium-crude projects in the Punta de Mata Division in eastern Venezuela.
For the Dragon Project, the proposed development plan involves drilling subsea wells in Venezuelan waters and tying them to the Hibiscus platform off the north coast of Trinidad. The Loran field is expected to be linked to the Manatee platform.
Alongside Shell, BP had also previously progressed in talks to exploit the Cocuina-Manakin joint field. Both energy corporations recently received US Treasury licenses to negotiate contracts with Caracas under restricted conditions.
The Nicolás Maduro government had suspended all joint natural gas projects with Trinidad in late 2025 after the Kamla Persad-Bissessar government openly supported the Trump administration’s Caribbean military build-up ahead of the January 3 military strikes against Venezuela. Maduro and First Lady Cilia Flores were kidnapped by US special forces.
Edited by Ricardo Vaz in Caracas.
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