Shell is advancing negotiations with Venezuela to expand its footprint in offshore gas projects, in what could mark a significant shift in the country’s energy strategy. According to Reuters, the British oil major is in discussions to develop multiple gas areas near Trinidad and Tobago, targeting some of the largest untapped reserves in the region.
The talks focus on expanding beyond the Dragon gas field — long seen as a flagship project — to include additional neighboring areas. If successful, the move could give Shell access to as much as 20 trillion cubic feet of gas across several offshore fields, strengthening its position in the Caribbean energy corridor.
Strategic expansion tied to LNG demand
Shell’s strategy is closely linked to liquefied natural gas (LNG) production. The company plans to process Venezuelan gas in Trinidad, where it already operates part of the Atlantic LNG facility — one of Latin America’s largest export hubs.
However, the plant has been operating below capacity due to limited gas supply. Therefore, securing Venezuelan reserves could help restore output levels and improve profitability.
At the same time, the negotiations reflect a broader effort by Venezuela’s government to attract foreign investment into its energy sector. Under the current administration, authorities have signaled openness to partnerships that can unlock dormant reserves and stabilize production.
Complex negotiations and geopolitical hurdles
Despite the potential upside, the deal faces several obstacles.
One key issue involves existing stakes held by Russian entities in some of the offshore fields. These interests, inherited from past agreements with state oil company PDVSA, remain unresolved and could complicate final approvals.
In addition, Chevron is expected to relinquish certain positions in the region as part of a separate restructuring effort, which could open new opportunities — but also adds another layer of negotiation.
Still, Shell executives have indicated that progress is being made, and a final investment decision on at least one major project could come by the end of the year.
Why this matters now
The timing is not случайный.
Global energy markets remain volatile, and demand for LNG continues to rise, especially as countries seek alternatives to traditional supply routes. In this context, Venezuela’s vast but underdeveloped gas reserves are gaining renewed attention.
For Shell, the move represents both a commercial opportunity and a strategic bet on long-term energy demand. For Venezuela, it could signal a cautious reopening to international oil and gas players after years of isolation.
If the negotiations move forward, the partnership may reshape the energy dynamics of the Caribbean — and potentially reinsert Venezuela into the global gas market in a meaningful way.