Shell plc is in advanced discussions with the government of Venezuela to expand its presence in several offshore gas areas located near Trinidad and Tobago, according to sources familiar with the talks.
The negotiations involve access to four areas tied to two of Venezuela’s largest offshore gas developments.
The company has for years sought to advance the 4.2-trillion-cubic-feet Dragon gas field and could reach a final investment decision before the end of the year.
Shell is also exploring participation in three neighbouring fields within the 12-tcf Mariscal Sucre project, alongside the 7.3-tcf Loran field, which together hold about 20 trillion cubic feet of gas reserves.
Gas produced from the Venezuelan fields is expected to be transported to Trinidad for processing into liquefied natural gas, supporting output at the Atlantic LNG facility where Shell holds a 45% stake.
The plant has been operating below its installed capacity due to insufficient gas supply.
Shell’s interest in the additional fields comes as it seeks to secure more gas resources that can be monetised through LNG exports, while both Venezuela and Trinidad aim to unlock offshore reserves located close to Trinidad’s energy infrastructure.
Negotiations could face hurdles, however, due to existing Russian interests in some of the fields.