Shell Global(US:SHEL) Zhi Tong Cai Jing·2025-10-09 06:29Core Viewpoint - Shell is preparing to restart preliminary work on the Dragon gas field in Venezuela to supply natural gas to Trinidad and Tobago, indicating increased confidence in the U.S. government's potential issuance of new licenses to exempt the project from sanctions [1] Group 1: Project Details - The Dragon gas field is located in the shallow waters between Venezuela and Trinidad, and its production will help alleviate Trinidad's LNG supply shortages [1] - The project is part of a dual strategy by the U.S. government towards Venezuela, balancing military pressure with diplomatic engagement to restart gas cooperation [1] - The U.S. government has previously revoked oil and gas project licenses in Venezuela to increase pressure on the Maduro regime, with the Dragon gas field being one of the projects affected [1] Group 2: Licensing and Regulatory Environment - In July, the U.S. government granted Chevron a limited license to restart heavy crude oil production and exports from Venezuela, with similar actions expected for Shell and other companies involved in gas projects [2] - The U.S. Treasury Department is still negotiating the final terms of Shell's license, which the company hopes will last up to 10 years for long-term investment [3] Group 3: Partnerships and Market Context - Shell's partner in the project is Trinidad's state-owned National Gas Company, while BP is also seeking to restore its license for the Manakin-Cocuina gas field straddling the maritime border of Venezuela and Trinidad [4] - Shell and BP are major shareholders in Trinidad's Atlantic LNG complex, which has seen declining gas production over the past decade, leading to supply shortages affecting LNG and petrochemical exports [5] Group 4: Strategic Implications - The U.S. government is willing to allow oil companies to restart operations in Venezuela as long as they pay taxes and fees in hard currency, with ongoing support for Trinidad to access Dragon gas field resources [9] - A 30-year production sharing contract for the Dragon gas field was signed at the end of 2023, with reserves exceeding 40 trillion cubic feet, although initial agreements were made in 2018 before sanctions halted progress [9]