Venezuela and Shell formalized five agreements on 11th June 2026 aimed at advancing a series of oil and gas initiatives, including the British energy company’s involvement in the strategically important Loran gas field, according to a government announcement. The agreements follow preliminary arrangements reached earlier this year between the two sides for these and other developments. Shell has been among the few major international energy companies to move quickly in pursuing Venezuela’s newly opened energy investment opportunities after the U.S. capture of President Nicolas Maduro in January 2026.
Through the latest agreements, the parties confirmed Shell’s role in the Loran gas field, a 7-trillion-cubic-feet offshore reservoir that stretches into the waters of Trinidad and Tobago. In addition, they established a technical alliance designed to support procurement activities and increase production at oilfields in Monagas North. A separate agreement was also signed to facilitate the acquisition of equipment and parts intended to reduce gas flaring.
The Loran gas field forms part of a broader offshore gas development strategy that includes the 4.2-TCF Dragon project involving Shell. Both projects are expected to play a key role in enabling Venezuela to begin offshore gas exports. The country possesses extensive offshore gas reserves that remain largely undeveloped, and the projects are anticipated to support initial gas supplies to Trinidad, where the resource can be processed into liquefied natural gas.
The latest agreements significantly strengthen Shell’s position in Venezuela’s energy sector. Having previously withdrawn from projects and closed offices in the country, the company now moves to the forefront of PDVSA’s partner portfolio for major energy developments.
Speaking during the signing ceremony, which was broadcast on state television, interim President Delcy Rodriguez said, “We are taking a historic step by signing this license for phase one of the Loran field’s development plan.”
The government also stated that oil produced from fields operated by Shell will help expand the availability of diluents required for the production of Venezuela’s flagship exportable Merey crude while also supporting supplies to domestic refineries.
Beyond Shell’s participation, the Loran gas field is also expected to involve British BP. According to separate agreements signed with the Venezuelan government in April, BP is set to participate in the project as well as in the neighboring Cocuina-Manakin offshore gas project.
