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Market Chatter: Shell Advances Venezuela Gas Project; Drilling Targeted in 2027

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Shell (SHEL) plans to award a drilling service contract for its 4.2 trillion-cubic-foot Dragon offshore gas project in eastern Venezuela by late September, as it aims to drill four wells from Q2 2027, Reuters reported Tuesday, citing people familiar with the matter.

The company has begun tendering for the required services and a contract will be awarded following a positive final investment decision, sources told the news agency. The advance shows that Shell is taking the project forward after years of delay caused by shifting US policy toward Venezuela.

Gas produced from the Dragon project will be transported to Trinidad, with about 70% of the output to be routed to the Atlantic LNG export facility and the remaining 30% to the domestic petrochemical industry, the report said.

Shell did not immediately respond to' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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