Venezuela signed five agreements with Shell on Thursday to advance oil and gas projects, including the first phase of development of the mothballed Loran offshore gasfield.
Loran is a non-associated natural gas asset with 7 reservoirs, of which 6 straddle the maritime boundary between Venezuela and Trinidad and Tobago, and is estimated to hold reserves of up to 198 bcm (7 tcf). Venezuela and Shell had signed preliminary agreements for Loran and other projects earlier in 2026.
Thursday’s agreements also cover services and procurement for work in Monagas state, aimed at increasing production of light crude used in the formulation of Venezuela’s flagship Merey blend, as well as of feedstock to support production at the Puerto La Cruz refinery.
The parties also signed purchase orders for parts and equipment to build facilities for the recovery of flared gas for export and to supply domestic power, industrial, petrochemicals and residential customers.
“We welcome the signing with Shell of Phase 1 of the license for the development and exploitation of the Loran Field and other agreements, reaffirming the path we have set for Venezuela to become a gas powerhouse and consolidate itself as an exporting country,” said Venezuela’s interim President Delcy Rodriguez on social media.
In 2023, Venezuela and Trinidad and Tobago reached a deal with Shell to produce and export gas from the Dragon field, which is estimated to contain 120 bcm (4.2 tcf) of gas. Together, the Loran and Dragon projects are expected to help Venezuela launch offshore gas exports, initially through supplies to Trinidad and Tobago for processing into LNG.