Shell (SHEL) is moving forward with plans to develop its Dragon offshore gas project in Venezuela, targeting a drilling start in the second quarter of 2027.
The energy giant has begun tendering for drilling services as it looks to advance one of its most strategically significant projects in the region.
Shell’s Dragon field sits offshore Venezuela and represents a key piece of the company’s broader gas development ambitions in Latin America.
The tendering process signals Shell’s commitment to the project despite the complex geopolitical and regulatory environment surrounding energy operations in Venezuela.
According to Reuters, Shell plans to drill four wells at the Dragon offshore gas field as part of the initial development campaign.
The drilling contract is expected to be awarded ahead of the planned Q2 2027 spud date, giving the winning contractor time to mobilize equipment and personnel.
Offshore drilling campaigns of this scale typically require extensive logistical preparation, particularly in regions with limited existing energy infrastructure.
The Dragon project has been closely watched by industry observers given Venezuela’s vast natural gas reserves and the challenges that have historically surrounded their development.
Shell’s decision to push ahead with tendering suggests the company has navigated at least some of the regulatory and commercial hurdles that have slowed similar projects in the country.
The move positions Shell to potentially bring new gas volumes online from Venezuela in the latter part of the decade, adding to its global portfolio of producing assets.
For investors tracking SHEL, the Dragon project represents a long-term growth opportunity in a frontier market where execution risk remains a key consideration.
Shell has not publicly detailed the full financial scope of the Dragon drilling program, but four-well offshore campaigns in deepwater or nearshore environments typically run into the hundreds of millions of dollars.
The award of the drilling contract will be a significant milestone, marking a formal transition from planning and tendering into active field development operations.
