Shell has signed agreements with Venezuela to explore the development of the country's oil and gas reserves. These deals, formalizing Shell's intent to pursue opportunities, were confirmed shortly after the US began permitting oil majors to negotiate with Venezuela.

Scope of Agreements

The agreements encompass a variety of opportunities, including offshore gas developments, onshore oil and gas projects, exploration, and initiatives for local content and workforce development.

Partnerships

In addition to the deals with Venezuela, Shell signed technical and commercial agreements with the Venezuelan engineering company VEPICA, as well as with international firms KBR and Baker Hughes. These partnerships reflect Shell's commitment to collaborating with both local and international entities to advance projects and infrastructure for Venezuela's development.

Specific Project Context

While Shell did not name specific projects, a company official previously indicated that the Dragon gas project—a 4.2 trillion-cubic-foot offshore development—could proceed. This follows a US Treasury Department notice in February that allowed specified oil majors, including Shell, to negotiate deals with Venezuela. The Dragon project has been involved in sanctions negotiations between the US and Venezuela and is intended to supply natural gas to Trinidad & Tobago.

Broader Diplomatic and Investment Climate

The agreements occur amidst shifting diplomatic relations. The US and Venezuela have agreed to re-establish diplomatic ties. Furthermore, US Interior Secretary Doug Burgum, during a visit to Venezuela, expressed optimism about oil investment flowing into the country. This follows a statement from US President Donald Trump that the US received 100 million barrels of Venezuelan crude after military forces captured President Nicolas Maduro in January.