Shell to complete survey at Venezuela gas field as license wind-down approaches

(Reuters) -Oil and gasoline group Shell plans to finish a marine survey at Venezuela’s offshore Dragon gasoline subject earlier than a U.S.-set Might deadline to wind down all licenses associated to vitality tasks within the nation, sources near the preparations stated.

Colombia-flagged survey vessel Dona Jose II arrived in U.S.-sanctioned Venezuela this month to collect knowledge for Shell and Trinidad’s Nationwide Fuel Firm, in line with LSEG vessel monitoring knowledge.

The exploration work, to be accomplished within the coming weeks, will permit the corporate to find out drilling places and pipeline design ought to Washington ultimately permit the undertaking’s improvement, deliberate to offer gasoline to Trinidad, the 2 sources added.

The vessel had been chartered by Shell when U.S. President Donald Trump’s administration earlier this month introduced the cancellation of a license it granted in 2023 to plan and develop the Dragon subject. Shell and NGC got till Might 27 to wind down operations in Venezuela.

Since Washington first imposed vitality sanctions on Venezuela in 2019, U.S. licenses are wanted for international corporations to barter, plan and develop oil and gasoline tasks with state-owned firm PDVSA.

Shell, NGC and PDVSA didn’t instantly reply to requests for remark.

Trinidad is Latin America’s largest exporter of liquefied pure gasoline (LNG) and one of many world’s largest exporters of ammonia and methanol, however the Caribbean nation must develop offshore fields in Venezuela and on the maritime border to counter its declining reserves and safe provide.

The Dragon gasoline undertaking had been seen as one of many few actual alternatives for Trinidad to safe international gasoline provide for its industries, whereas permitting Venezuela to start monetizing its huge offshore gasoline reserves.

Venezuela in 2023 granted Shell a 30-year license to function the Dragon subject, with gasoline exports anticipated to start as early as subsequent yr to be was LNG in Trinidad.

The U.S. has accused Venezuelan President Nicolas Maduro of not doing sufficient to revive democracy and safe the return of migrants illegally within the U.S. Venezuelan officers have stated the sanctions quantity to an “financial battle”.

(Reporting by Curtis Williams and Marianna Parraga in Houston; Modifying by Jan Harvey)