The development of the 4.2-trillion cubic foot Dragon gas discovery, a project involving Shell and BP in Venezuelan waters, is now advancing. This progress follows recent US sanctions relief, specifically the issuance of general licences by the US Office of Foreign Assets Control (OFAC). These licences exempt a handful of oil and gas exploration and production companies, including Shell and BP, from sanctions, permitting them to do business with Venezuela's government and its state-owned company, PdVSA.

Project Details and Impact of Sanctions Relief

The Dragon field development had been stalled for several years due to shifting US sanctions on Venezuela. The new general licences, particularly General License 50 (amended to GL 50A), are described as a positive signal that clears the path forward. A Shell spokesperson confirmed that the approvals allow for progress on the Dragon project, which the company is now progressing in full compliance with sanctions and existing regulatory frameworks.

Strategic Importance and Export Plans

The gas from the Dragon field is intended to be supplied to Trinidad & Tobago’s Atlantic LNG plant for liquefaction and export. This project aligns with Shell's broader strategy to remain the top global LNG supplier and become the world’s leading integrated energy company, with Venezuela fitting into this strategic vision.