Shell seeks new licence for Venezuelan Dragon gas project

Core Insights - Shell is preparing to restart preliminary work on the Dragon gas field offshore Venezuela to supply gas to Trinidad and Tobago, pending a new license from the Trump administration that would exempt it from sanctions [1][2] - The Dragon gas field is vital for Trinidad, a major exporter of liquefied natural gas (LNG) and other gas-based products, and the anticipated license reflects a dual approach by the administration towards Venezuela [2][3] - The US Treasury Department has not commented on the issuance of licenses, but similar licenses for Shell and other companies are expected to benefit Trinidad [3][5] Group 1 - The Dragon gas field has over four trillion cubic feet of reserves and is a key project for Shell and Trinidad's National Gas Company [4][6] - Shell aims for a long-term license of up to ten years to support sustained investment in the gas field [4] - The Trump administration is reportedly open to allowing oil companies to resume operations in Venezuela, provided they do not pay taxes and royalties to the Venezuelan government in hard currency [5] Group 2 - US Secretary of State Marco Rubio supports Trinidad's access to the Dragon field, with conditions to limit benefits to the Venezuelan regime [6] - In late 2023, Venezuela's Oil Ministry awarded Shell and Trinidad's National Gas Company a 30-year production-sharing contract for the Dragon gas field, with initial terms settled in 2018 [6]